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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 ?
In offering world-class insurance services in the oil and energy sector and other allied areas to further consolidate its leadership position in that regard, the underwriting firm would not yield, as per his commitment.
a Seattle-based municipal bond underwriting firm engaged in bond business east of Colorado.
a municipal bonds underwriting firm, is reassuring its investors of the underlying strength of municipal bonds during this period of market turbulence.
Recently, he was managing director of Recovco Mortgage Management, a large forensic underwriting firm representing many of the largest mortgage lenders in the nation.
The underwriting firm also added Philip Smith, a former Smith Barney analyst, who is responsible for much of the firm's quantitative analysis.
AUS is a non-exclusive, independent life expectancy underwriting firm specializing in life settlement underwriting, older age and impaired risk underwriting, underwriting audits and management consulting.
Petersen International Underwriters is a specialty insurance marketing and underwriting firm.
Bankole said, "Under the new business model, the activities of the underwriting firm will be anchored on three divisions namely, retail and business development, operations and finance and administration respectively.
Hiring Travers & Bell, says Lucas, also broke a monopoly held by an underwriting firm owned by the family of John Stennis, Mississippi's ultra-conservative senator.
S&Y Capital Group is an affiliate of Stone & Youngberg LLC, a regional investment banking and municipal bond underwriting firm founded in 1931.
In addition, the firm ranked as the number two underwriting firm in the Commonwealth based on the dollar volume of bonds issued.