What is an underwriter's main role in a public offering?

The main role of an underwriter in a public offering is to help issuers raise capital by selling securities. In this capacity, underwriters work with companies that want to go public or issue new securities. They typically assess the financial health of the issuer, determine the appropriate pricing for the securities, and facilitate the sale of these securities to investors.

Underwriters often take on the risk of buying the entire offering from the issuer before selling it to the public, ensuring that the issuer receives the capital they need upfront. This process is critical because it provides companies access to funds for growth, development, or operational needs while enabling investors to purchase shares or bonds in those enterprises.

The other roles mentioned, such as assisting in legal compliance or managing stock buybacks, while important, are not central to the underwriter's primary function in a public offering. Providing investor education also falls outside the core responsibilities of underwriters in this context, as it usually involves different parties like financial advisors or educators.