Capital MarketsQuestion 306 of 398
Several broker-dealers join together to share the risk and distribution responsibilities of a large securities offering. This group is called a(n):
a.Clearing corporation
b.Self-regulatory organization
c.Board of governors
d.Underwriting syndicate
Explanation
An underwriting syndicate is a group of broker-dealers formed to spread the risk and marketing effort of distributing a large new issue. The syndicate is led by a managing (lead) underwriter who coordinates the offering.
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