(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 ?
As part of the settlements, 72 underwriting firms -- comprising approximately 96% of the market share for municipal underwritings -- have agreed to improve their due diligence procedures and we expect that investors will benefit from those improvements.
The affiliation aspect of independent variables two through four (top-20 venture capital firms, prestigious underwriting firms, and the reputation of university scientists) was measured through the SEC 6(b) method.
The increase in competition between underwriting firms may have been substantially influenced by the changes in the market brought about by the passage of the Tax Reform Act of 1986.
21st Services found only three insureds who were a standard risk, as opposed an average of 150 standard risks found by three other nationally recognized underwriting firms for the same population.
The Massachusetts Department of Transportation ( MassDOT ) Office of the Chief Financial Officer requests responses from qualified underwriting firms interested in providing investment banking services to MassDOT.
filed a supplementary prospectus to its shelf registration today, in which the Company proposes to offer 2,500,000 shares of its Common Stock through the underwriting firms, ThinkEquity Partners LLC, acting as lead managing underwriter, and Punk, Ziegel & Company, L.
The purpose of this Request for Qualifications (the RFQ ) is to select qualified underwriting firms for inclusion in the Authoritys underwriting pools for Senior Managing Underwriter (the Senior Manager Pool ) and Co-Managing Underwriter (the Co-Manager Pool and, together with the Senior Manager Pool, the Pools ) for transactions that may be sold on a negotiated basis.
Assist the District in the selection of financial underwriting firms including the preparation of the request for proposal to provide financial underwriting services, indepth evaluation of proposals submitted, oral presentations, and selection of the financial underwriting pool and financial underwriting syndicates for specific transactions.
The action alleges the following underwriting firms -- which were co-lead underwriters of Extreme Networks' initial public offering -- as defendants: Morgan Stanley & Co.
Tenders are invited for Underwriting firms for the potential issuance of $10,000,000* in general obligation refunding bonds, series 2016.
The assertion of plaintiffs' lawyers that Audible had the ability to monitor the manner in which these well-known underwriting firms sold Audible's securities is patently ridiculous, and we are convinced that no one associated with Audible acted improperly in any way.
The Financial Advisor Shall Assist The Town Staff In Selection Of Bond Underwriting Firms (the