Securities Consignment Sales and Securities Underwriting: The Differences

When underwriting securities, the securities company and the issuer must sign an agreement, which should specify the following matters:

Issuers of publicly issued securities have the right to independently select the underwriting securities companies according to law. Securities companies shall not solicit securities underwriting business through unfair competition.

Securities underwriting refers to a series of activities conducted by securities companies with the qualification for securities underwriting business, where they accept the entrustment of securities issuers to sell the proposed securities within the legally prescribed or agreed time frame, utilizing their own good rep...