Which of the following best describes the function of a syndicate in securities underwriting?

The function of a syndicate in securities underwriting is best described as a collective of investment bankers assisting in selling a new issue. When a company wants to issue new securities, it often forms a syndicate of investment banks to spread the risk and combine resources. This team helps in pricing the securities, marketing them to potential investors, and ultimately selling them. By pooling their expertise and capital, members of the syndicate can better manage the complexities of the underwriting process, ensuring the securities are successfully issued and marketed.

The importance of this collaboration lies in the fact that an individual investment bank may not have the necessary capacity or reach to effectively distribute large issues alone. The syndicate approach allows for a more efficient distribution network, increasing the likelihood of a successful offering while minimizing financial risk for the participating banks.