What is meant by "Underwriting", the term frequently used in financial sector?

Undervaluation of the assets

No worries! We‘ve got your back. Try BYJU‘S free classes today!

The act of taking on a risk for a fee

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Giving a guarantee that a loan will not become a bad loan

No worries! We‘ve got your back. Try BYJU‘S free classes today!

The act of permission to float an IPO

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B The act of taking on a risk for a fee
Undertaking refers to the act of taking on a risk for a fee. It is mainly provided by some large financial institutions. For example: Undertaking services are provided by banks, insurance companies, etc.

Suggest Corrections