underwriting
Definition 1
The procedure by which an underwriter brings a new security issue to the investing public in an offering. In such a case, the underwriter will guarantee a certain price for a certain number of securities to the party that is issuing the security (in exchange for a fee). Thus, the issuer is secure that they will raise a certain minimum from the issue, while the underwriter bears the risk of the issue.
Definition 2
The process of insuring someone or something.
Definition 3
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.
The procedure by which an underwriter brings a new security issue to the investing public in an offering. In such a case, the underwriter will guarantee a certain price for a certain number of securities to the party that is issuing the security (in exchange for a fee). Thus, the issuer is secure that they will raise a certain minimum from the issue, while the underwriter bears the risk of the issue.
Definition 2
The process of insuring someone or something.
Definition 3
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.
This content can be found on the following page:
underwriting is ...
... part of the Brokerages, Insurance and IPOs subjects.
... part of the Brokerages, Insurance and IPOs subjects.
Related Terms
offering price, broker loan, syndicate, direct financing, negotiated underwriting, pipeline, all or none, allottee, brought over the wall, bulge bracket and
underwriting appears in these other terms
underwriting group, underwriting agreement, underwriting spread
underwriting appears in the definitions of these other terms on BusinessDictionary.com
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