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Ing house which handles the security issue ought to be of intimate, permanent, and semi-professional nature. A corporate official ought to pick out a banker in whom he has implicit confidence, just as he picks out a physician or a lawyer in whom he has confidence, and ought to stick to the man or the firm he has picked out until that confidence is shaken or there is some real reason for disagreement. In that case, he should cut off all relations as quickly as possible and entrust his financial affairs to some other banking house. In other words, the banker feels that he is rendering a personal and partly professional service rather than merely buying and reselling a certain commodity. Syndicate Agreements There are four distinct types of agreements between an underwriting syndicate and the corporation which puts out the underwritten issue. Possibly other variations from these basic types could be found. 1. The corporation may itself sell the issue and the syndicate may simply insure that the whole issue will be disposed of within a given time at a minimum price. The corporation, we will say, is bringing out an issue of $1,000,000 6% bonds, which it offers at par. The underwriting syndicate may agree that it will take any bonds left unsold at the end of the year at a special price of 90. The syndicate would receive a commission of 2 to $% for making this agreement. If the issue were successfully sold, the syndicate would merely collect and distribute its commission and dissolve. If the issue at the agreed price were unsuccessful, the syndicate would take over the unsold balance and dispose of it. This type of agreement is now uncommon except when a corporation has given a subscription privilege to its own shareholders but is apprehensive that the offer will not be taken up in full....