By providing analyst reports on the stock to its affiliated brokerage firms, the underwriter is likely to promote the stock. This assertion is true.
An investment bank that purchases shares from a firm and then resells them to the public is known as an "underwriter." The lead underwriters, often known as "book-runners," are in control of the procedure.
The underwriters get a premium or profit in exchange for their services, which guarantees that the company's initial public offering (IPO) will obtain the necessary funds. Investors profit from the underwriting's screening process and its capacity to make wise investment decisions.
The underwriter is responsible for offering analyst recommendations, post-market stabilization, and building a market for the issue's stock after it has been released to the public.
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