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What Is The Role Of Underwriters In The Securities Markets? |
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Answer» UNDERWRITERS are PRIMARY market specialists who promise to pick up that PORTION of an offer of SECURITIES which may not be bought by investors. They serve an important function in the primary market, providing the issuer the comfort that if the securities being offered do not elicit the desired demand, the underwriters will step in and buy the securities. The specialist underwriters in the GOVERNMENT bond market are called primary dealers. Underwriters are primary market specialists who promise to pick up that portion of an offer of securities which may not be bought by investors. They serve an important function in the primary market, providing the issuer the comfort that if the securities being offered do not elicit the desired demand, the underwriters will step in and buy the securities. The specialist underwriters in the government bond market are called primary dealers. |
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