Question

The law limits the commission payable on the issue of debenture to

Answer 1

Underwriting in the context of a company means undertaking a responsibility or giving a guarantee that the shares or debentures offered to the public will be subscribed for.

There are firms which undertake this sort of work and are very useful to companies which want to raise funds by the issue of shares or debentures. If the shares or debentures are not taken up by the public wholly, the underwriters will have to take them up and pay for them.