(redirected from Underwriting Firms)
Also found in: Dictionary, Thesaurus, Legal.


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 ?
According to the Commissioner for Insurance, Fola Daniel, six underwriting firms are currently holding merger talks to meet regulatory demands.
Led by affiliates of Merrill Lynch (NYSE: MER), one of the world's leading equity trading and underwriting firms, the round includes a new investment from Mercury Interactive Corp.
21st Services found only three insureds who were a standard risk, as opposed to an average of 150 standard risks found by three other nationally recognized underwriting firms for the same population.
With representatives from over 90 broker-dealer and underwriting firms in attendance, this conference is an ideal forum for us to share our strategic initiatives and build relationships with investment industry professionals.
one of the nation's top underwriting firms specializing in bond market transactions.
The complaint names certain officers and directors of Webvan, as well as the following underwriting firms -- which were co-lead underwriters of Webvan's initial public offering -- as defendants: Goldman, Sachs & Co.
COM will be the on-line investment bridge for investors who want the opportunity to participate in IPO offerings on a more level playing field, and who otherwise would be shut out for lack of information and direct access to the underwriting firms.
Because of the special nature of this transaction, AHFC departed from its pre-approved list of qualified underwriting firms and issued a Request for Proposals.
OTC BB:QNET) has announced the hiring of Paul Zeller to advise and prepare the necessary documents for a full registration with Nasdaq and locate qualified underwriting firms for a secondary IPO of the Company.
The winning bid was submitted by the underwriting firms of Paine Webber, Artemis, and Bear, Stearns at a net interest cost of 5.
It is one of the top five underwriting firms in Canada, with strength in IPOs and a number of industry sectors.