Economics · Financial Markets
What does the term 'Underwriting' mean in financial markets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A promise to buy shares from the secondary market.
- 2An undertaking to subscribe to shares or debentures if public subscription is not adequate.✓
- 3A promise to buy debentures at a future date.
- 4Assuring public subscription to the issue of shares.
Correct answer
An undertaking to subscribe to shares or debentures if public subscription is not adequate.
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