Question

is an arrangement under which an investment banker agrees to purchase all shares of a public offering at an agreed - upon price.
○ a. alternative trading
○ b. underwriting
○ c. a mutual fund
○ d. a convertible security

Explanation:

Underwriting is a financial service where an investment banker (underwriter) guarantees to buy all shares of a public offering at a pre - agreed price. This helps the issuer (company) to raise capital as the underwriter takes on the risk of selling the shares to the public.
Alternative trading systems are platforms that facilitate trading of securities outside of traditional stock exchanges. A mutual fund is a pooled investment vehicle. A convertible security is a financial instrument (like a bond or preferred stock) that can be converted into another form (usually common stock).

Answer:

B. Underwriting