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Underwriting

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Wikipedia, Hutchinson 0.06 sec.
Underwriting
Acting as the underwriter in the issue of new securities for a firm.

Underwriting. Underwriting means insuring.

An insurance company underwrites your policy when it agrees to take the risk of insuring your life or covering your medical expenses in exchange for the premium you pay.

An investment bank underwrites an initial public offering (IPO) or a bond issue when it buys the shares or bonds from the issuer and takes the risk of having to sell them to individual or institutional investors to recover its investment.



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