Multiple choice

Guaranteeing to subscribe to an agreed number of shares for consideration is called

  1. guarantee

  2. undertaking

  3. underwriting

  4. pledge
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Underwriting is an agreement where by the underwriters ensure the company that in case the shares and debentures offered to the public, are not subscribed by the public to the extent, the balance of shares and debentures will be taken up by the underwriters.

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