4. Sara is the chief financial officer (CFO) of a large private corporation that is planning a major expansion. She is preparing her company for an initial public offering (IPO) and needs to select an underwriter. Sara will most likely use a (n)

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30 September, 05:22

4. Sara is the chief financial officer (CFO) of a large private corporation that is planning a major expansion. She is preparing her company for an initial public offering (IPO) and needs to select an underwriter. Sara will most likely use a (n)

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Alicia Gentry · Answer 1

Answer: Investment Banker

Explanation:

Investment bankers are the go to entities in the financial. world when one wants to embark on an IPO.

They play a very good role of Underwriter as they have an expertise in this market. The process works by the Investment bank giving advice to the company in question, researching and marketing information on the shares to be sold, and follow up advising afterwards.

As an underwriter, Investment banks sometimes buy up all the shares at a lower rate and then resell it, this ensures that all of the company's shares are sold.