McqMate
| Q. |
Under-writting refers to - |
| A. | under estimation |
| B. | under selling |
| C. | winding up the business |
| D. | an act of insuring risk |
| Answer» D. an act of insuring risk | |
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Explanation: The word "underwriter" is said to have come from the practice of having each risk- taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment. |
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