underwriter

Definitions (2)

1. An investment bank that acts as an intermediary between the issuing company and the investors who purchase the company's debt instruments and/or stock at the Initial Public Offering (IPO). The underwriter buys the newly issued securities from the company and sells them to investors on the secondary market through a stock exchange.
2. An issuer of insurance policies.

Use underwriter in a sentence

A company can hire an underwriter to manage the sometimes difficult process of issuing stock, bonds or other traded securities.

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Direct Public Offering general cash offer