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WAEC Commerce 2010 Question 45

Question 45

Stock Exchange

A firm on the stock exchange which agrees to buy shares not bought after a public offer is

  1. A.a broker.
  2. B.a stag.
  3. C.a jobber.
  4. D.an underwriter.
Show the answer and explanation

Answer: D (an underwriter.)

Explanation

An underwriter guarantees to take up shares the public does not buy.