Series 79 practice questioneasySyndicate Formation
What is the primary role of the lead bookrunner in an underwriting syndicate?
- ATo manage the book of investor orders, coordinate the offering process, and determine allocations✓ Correct answer
- BTo provide legal opinions on the registration statement
- CTo ensure all shares are sold to retail investors only
- DTo audit the issuer's financial statements
Explanation
Why A — To manage the book of investor orders, coordinate the offering process, and determine allocations
The lead bookrunner (also called the lead manager or active bookrunner) is responsible for managing the book-building process, including collecting and tracking investor indications of interest, coordinating the roadshow, advising on pricing, determining share allocations, and overseeing the stabilization process. The lead bookrunner typically receives the largest share of the management fee and has the most influence over deal execution and investor allocations.
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