Question

State the following statement is True or False:

Underwriter purchase unsold shares of the company.

• A. True
• B. False

Answer 1

The correct option is A True

It is true. A company must have an underwriter, who helps the companies in introducing their securities to the market. An underwriter is required to sell securities and if he is not able to sell, then underwriter is liable to purchase the unsold shares of the company.