moomoo US Help Center-What is a sponsor
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What is a sponsor

A sponsor can be a range of providers and entities supporting the goals and objectives of an individual or company. Sponsors invest in private companies, create demand for publicly traded securities, underwrite mutual fund shares for public offerings, issue exchange-traded funds, offer platforms for benefits, and more.

A sponsor can provide a wide range of services and support within the financial industry.

Startup companies are sponsored through investors. Startups often build a diverse group of investors that can include individuals, venture capital firms, private equity firms, and corporations. 

When a company chooses to go public it also engages the support of a sponsor or sponsors. Sponsors help guide the company through the initial public offering (IPO) process and also provide credibility for new investors considering the IPO investment. 

Underwriting sponsors are also utilized for mutual fund and exchange-traded fund offerings. 

Benefits plan sponsors are also well known in the investment industry. Plan sponsors are companies or employers who create a benefit plan for their employees. 

Risk Disclosure This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.