house of issue


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House of issue

An investment banking firm whose business it is to underwrite stock or bond issues and offer the securities to the public.

Underwriter

A company, usually an investment bank, that an issuer hires to place a new issue with investors. The issuer normally hires several underwriters for a single issue, where each is responsible for placing a certain amount of the new issue. The underwriters contact potential investors to gauge interest and sell the issue. Underwriters guarantee the price for a certain number of shares of the new issue. Because of their expertise on placing securities with investors, using underwriters often increases the chance that the placement will be successful. An underwriting firm is also called a house of issue. See also: Bracketing, Oversubscribed, Undersubscribed, Underwriting agreement.

house of issue