Series 79 practice questionmediumSyndicate Formation
In an underwriting syndicate, which document most commonly specifies the allocation of shares and liability among underwriters, including the percentage of the deal each underwriter is responsible for?
- AUnderwriting Agreement (UA)
- BProspectus Supplement
- CEngagement Letter
- DAgreement Among Underwriters (AAU)✓ Correct answer
Explanation
Why D — Agreement Among Underwriters (AAU)
The AAU lays out allocation and liability provisions among syndicate members, ensuring clear responsibilities. The UA governs the issuer-underwriters relationship, not syndicate mechanics.
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