Which of the following best defines underwriting?

Multiple Choice

• When shares are traded between investors at a price below its market value.

• When shares are sold to the public for the first time.

• When an investment dealer or a group of investment dealers purchase the securities from a firm and market them to the public.

• The process of preparing shares to be traded on the OTC market.

• Situation where an investment dealer or group of investment dealers sell securities at a price below or under its market value.