Financial Accounting II
Underwriting is the process by which investment banks or financial institutions assess and assume the risk of issuing securities, such as stocks or bonds, for companies looking to raise capital. This process involves evaluating the financial health of the issuer, determining the appropriate pricing for the securities, and ultimately facilitating the sale of these securities to investors. Underwriting plays a crucial role in ensuring that issuers can access necessary funds while providing investors with viable investment opportunities.
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