Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

Securities underwriters play a crucial role during an Initial Public Offering (IPO) by managing the underwriting process and determining the price of the securities. Their primary responsibilities include assessing the company's financial health, market conditions, and investor appetite to set an appropriate offering price for the shares. They also help in structuring the IPO, deciding how many shares to issue, and negotiating with various stakeholders.

By managing the underwriting process, underwriters ensure that all regulatory requirements are met and that the offering is successfully marketed to potential investors. They act as intermediaries between the issuing company and the investors, facilitating the sale of shares while also providing critical financial and strategic advice throughout the process. This management ensures that the company raises the necessary capital while balancing the interests of investors and the market.

In contrast, while selling stocks directly to consumers could be part of their broader activities through a brokerage arm, it is not their primary responsibility during an IPO. Providing legal advice falls outside the scope of their role, as this task is typically handled by legal professionals. Likewise, auditing financial statements is a function performed by independent auditors, not underwriters.