1, market conditions, depressed trading market, more difficult to complete the task of securities promotion, investment banks have to be forced to hold some shares;
2. The potential of securities, especially stocks. If the potential is excellent, investment banks can effectively avoid risks. Even if it can't be sold, when the shares it holds appreciate in the secondary market, it can be sold smoothly and get interest spread income.
3. The design of issuance methods, such as public offering or private placement, pricing letter or competitive offering, online offering or offline offering, also affects underwriting risk;
4, underwriting syndicate, the formation of a large underwriting syndicate can usually offset some risk factors;
5. Other risks, such as the expenses incurred by the underwriter in undertaking business.
Underwriting business can be divided into two ways: consignment or underwriting. Securities consignment refers to the underwriting method in which securities companies sell securities on behalf of issuers and return all unsold securities to issuers at the end of the underwriting period. Securities underwriting refers to the underwriting method in which a securities company purchases all the securities of the issuer according to the agreement, or purchases all the securities left after the sale by itself at the end of the underwriting period.
Legal basis: Article 6 of the Measures for the Administration of Issuance and Trading of Corporate Bonds.
Underwriting institutions, entrusted managers, credit rating agencies, accounting firms, asset appraisal institutions, law firms and other professional institutions and personnel that provide services for corporate bond issuance should be diligent and conscientious, strictly abide by professional norms and regulatory rules, and perform their obligations in accordance with regulations and agreements.
The issuer, its controlling shareholder and actual controller shall fully cooperate with the relevant work of underwriting institutions, trustee institutions and securities service institutions.