What term is used to describe an agreement where an investment banker purchases an entire issue of securities from a corporation?

The term used to describe an agreement where an investment banker purchases an entire issue of securities from a corporation is "underwriting." In the underwriting process, the investment banker assumes the financial risk by agreeing to buy the entire securities issue from the corporation at a predetermined price. This arrangement allows the corporation to raise capital efficiently since it guarantees that the investment banker will purchase the securities and facilitate their distribution to the public or investors.

Underwriting is a critical step in the issuance of new securities, as it not only assures the issuer that they will receive the funds needed but also allows the investment banker to manage the distribution of those securities to other investors, ensuring a smooth transition from issuance to sale.

Other terms may describe different agreements or arrangements related to securities but do not encompass the same risk assumption and commitment that underwriting involves. For instance, a best efforts agreement allows the investment banker to sell the securities without guaranteeing the entire issue will be sold, placing less risk on the banker. A syndicated offering involves multiple investment banks working together to manage the offering, rather than a single banker purchasing the entire issue. A public issue simply refers to the public offering of securities and does not detail the specific arrangement between the issuer and the investment banker.