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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 ?
There are six independent variables in this study: (1) size of the board (SIZE); (2) affiliated directors from top-20 venture capital firms (AFVC); (3) affiliated directors from prestigious underwriting firms (AFUN); (4) reputation of directors who are affiliated university scientists (AFUS); (5) CEOs who were former university scientists (CEOUS); and (6) CEOs with financial backgrounds (CEOFI).
Under the proposed procedure, cities and states are, in effect, determined to be guilty of having overpaid Wall Street underwriting firms unless and until they can prove themselves to the IRS not just innocent, but also not, victimized.
Nigerian underwriting firm, Consolidated Hallmark Insurance (CHI) Plc, has posted a profit.
The above ranking of firms is based on the total deal proceeds of debt and equity offerings on which the underwriting firm served as a bookrunner (senior lead) or co-manager for the full year of 2010.
The above ranking of firms is based on the total deal proceeds of taxable debt and equity offerings on which the underwriting firm served as a bookrunner (senior lead) or co-manager.
European Investment Bank (EIB) is planning to offer AUD231m worth of two-year ecology bonds in a sale which starts on Tuesday Dow Jones has reported, citing an official at underwriting firm Daiwa Securities.
Stone & Youngberg is pleased we were able to place the CREB as well as underwrite the more conventional certificates of participation to provide the financial resources to the District for the Frontier Project," said Anna Van Degna, a vice president with bond underwriting firm, Stone & Youngberg.
World Bank is planning to sell up to AUD35m of five-year Uridashi bonds in a sale which runs through May 27, 2010 Dow Jones has reported, citing an official at underwriting firm SMBC Friend Securities.
Responsibilities: He contributes to the strategic planning and business development of this top-rated minority- and women-owned municipal bond underwriting firm that ranked No.
Established in 1995 and owned 100 percent by the Geary Companies, Capital West Securities is an Oklahoma-based full-service brokerage and municipal underwriting firm with offices in Texas.
a Seattle-based municipal bond underwriting firm engaged in bond business east of Colorado.