Does investment bankers act as a dealer.?


2 Answer(s)


Security Dealer is the one who stands ready to buy and sell the securities at a good price but if an issue had remained unsubscribed then investment banker has to buy the unsubscribed portion for the same and will dispose off the securities in the market immediately after the listing. So investment banker will suffer the loss and if the price of the security falls. So generally they will not be there to buy the security so they will not act as a dealer. Rather their job is to facilitate the listing of the securities of a company to stock exchanges.

yes they are the major dealers.