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A Firm Commitment underwriting of a security is when the investment banks 1) Very firmly feel that the investors in the security will achieve a

A Firm Commitment underwriting of a security is when the investment banks

1) Very firmly feel that the investors in the security will achieve a high rate of return

2) Firmly commit to buy back any of the securities sold to investors who later change their mind about holding them

3) Purchase the securities from the issuing firm, remarket them to investors, and own any that are not able to be remarketed

4) Attempt to sell the securities that the firm is offering, and return to the firm any securities for which they were unable to find buyers

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