Q11
The underwriter has to take up ________________.
A.
the fixed portions of the issue capital
B.
the unsubscribed part of the agreed portion
AnswerC.
the agreed portion or can refuse if
D.
the unfixed portions of the issue capital
Answer: Option B
Solution
Answer: Option B
Solution:
The underwriter has to take up the unsubscribed part of the agreed portion. The underwriter undertakes the guarantee for only part of the issue offered to the public and his liability is limited to the extent of unsubscribed portion of the issue underwritten by him.