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A firm, usually an investment bank, that buys an issue of securities from a company and resells it to investors. In general, a party that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities.


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.


An investment banker that acts to guarantee the sale of a new securities issue by purchasing the securities for resale to the public. Also called sponsor. See also agreement among underwriters, investment banker, lead underwriter.


An underwriter, typically an investment banker, may buy an entire new securities issue from the company or government offering it and resell the issue as individual stocks or bonds to the public.

Or, in a best-efforts arrangement on a stock IPO, the underwriter may commit to selling as many shares as possible without actually buying the securities.

Part of the underwriter's job is to weigh the risks involved in taking on the financial responsibility of finding buyers against the profit to be made on the difference between the price paid for the issue and the profit it will generate.

Typically, a number of bankers join forces as a purchase group, or syndicate, to spread the risk around and to reach the widest possible market.

Insurance policies also need an underwriter. In this case, the term refers to a company that is willing to take the risk of insuring your life, property, income, or health in return for a premium, or payment.

References in periodicals archive ?
Underwriters also see "godson" ("ahijado" in Spanish) or "hijo de crianza," which means "stepson" but (usually) without adoption or court papers to prove it.
At the time of application, one can go online and verify information instantly rather than send or upload applications to the home office to have underwriters order a report and wait a week or two for it to come in.
Underwriters are strictly"numbers people"--they use a computerized database to make all of their initial assessments.
Underwriters often want to know the professional background of the audit committee member serving as the financial expert, and they may also want to delve into recent transactions, including related-party transactions in past three years and the existence of special purpose entities (SPEs).
Underwriters may be willing to consider extensions of terms beyond the two weeks under some circumstances.
One such objective might read, "After completing the class, the underwriter should be able to list appropriate resolutions for damp basements.
They are part of the procedures underwriters undertake to perform and document a "reasonable investigation" of unaudited information included in offering documents.
The truth is that underwriters often are frustrated by their inability to get the information they need, and may be less willing to accept opaque information on how stock options have been handled or how compensation is granted to executives.
However, since this is not the case, the underwriter will need to make certain assumptions to conduct the analysis.
In our case, the lead underwriter controlled the road-show process, but we did much of the work.
Description: This designation is awarded to attorneys, chartered life underwriters, certified public accountants, certified trust and financial advisers, chartered financial consultants and certified financial planners.
Neural network decisions are based on the collective data representing a large number of lending decisions made in recent years by every underwriter on the company's staff.