B Com Exam  >  B Com Questions  >  What is the primary purpose of underwriting i... Start Learning for Free
What is the primary purpose of underwriting in the stock market?
  • a)
    To guarantee a fixed market price for shares during an initial public offering.
  • b)
    To ensure that all shares are sold at par value to new investors.
  • c)
    To determine the dividend payout ratio for shareholders.
  • d)
    To mitigate the risk associated with selling securities during an IPO.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What is the primary purpose of underwriting in the stock market?a)To g...
Underwriting in the stock market involves mitigating the risk associated with selling securities, especially during initial public offerings (IPOs).
Explore Courses for B Com exam
What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer?
Question Description
What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer?.
Solutions for What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What is the primary purpose of underwriting in the stock market?a)To guarantee a fixed market price for shares during an initial public offering.b)To ensure that all shares are sold at par value to new investors.c)To determine the dividend payout ratio for shareholders.d)To mitigate the risk associated with selling securities during an IPO.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice B Com tests.
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev