Underwrite securities, Before entering a formal agreement,

Underwrite securities

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Reference no: EM1361308

Before entering a formal agreement, investment bankers carefully investigate the companies whose securities they underwrite; this is especially true of the issues of firms going public for the first time. Since the bankers do not themselves plan to hold the securities but intend to sell them to others as soon as possible, why are they so concerned about making careful investigations?

Reference no: EM1361308

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