What is the role of the underwriter in a primary market transactions?

Underwriting simply means that your lender examines your income, assets, debt,
and property facts before issuing final approval for your loan. An underwriter is a
financial specialist who examines your finances and determines how much risk a
lender will take on if they decide to make you a loan. An underwriter is any person
who examines and takes the risk of payment for another party. Underwriters operate
in a variety of financial sectors, from insurance to mortgage financing. Underwriters
assess the amount of risk for lenders.

When launching a new issue, underwriting is crucial. An underwriter's function in a

primary market involves acquiring unsold shares if it is unable to sell the requisite
number of shares to the public. A financial institution may act as an underwriter and
receive a commission on underwriting.