underwriting agreement

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Underwriting agreement

The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group. Compare to agreement among underwriters.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Underwriting Agreement

A contract between the issuer of a security and a managing underwriter stating the responsibilities and rights of each party as the security is placed with investors. The underwriting agreement may state the size of the new issue, the percentage of the sale that the underwriters are allowed to keep, and whether or not it is sold on a best efforts basis, among other things. The contract helps define and avoid problems before they start.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

underwriting agreement

A written contract between a company planning a public securities issue and the managing underwriter of that issue. The agreement specifies the particulars of the issue such as dates, fees, offering price, and the responsibilities of the parties. Compare agreement among underwriters.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Reportedly, underwriting agreements have been obtained for 100% of the issue, of which the company's chairman Anders Lonner will underwrite over 97%.
Jacoby has agreed to produce DOUBLE EXPOSURE dark angels and secure talent and underwriting agreements on behalf of the Company.