Underwriting

Underwriting \ An arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. Underwriters undertake to subscribe for any of the issue not taken up by the public. They charge commission for this service.

Acting as the underwriter in a purchase and sale.

1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).

Where an insurance company takes into account known facts like your age, sex and health, in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are calculated after taking these factors into consideration.

A bank or other financial institution"s guarantee to a company that it will buy a certain number of shares in a company"s new issue or rights issue, should the issue not be fully subscribed by other investors.From the company"s point of view, having its new issue underwritten is a form of insurance. It means that if it has priced an issue too high and the market shuns it, the company can still be sure that it will get money from the new issue.Of course, security comes at a price. Underwriters charge a fee for the back-up they provide. If the new issue is very popular, it will pocket that fee and make a handsome profit. Occasionally, they get badly burned. New issues underwritten immediately before the 1987 stock market crash lost a lot of money.Sometimes companies do a rights issue at a deep discount to reduce the underwriting fees.

Underwriting / an arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. underwriters undertake to subscribe for any of the issue not taken up by the public. they charge commission for this service.

acting as the underwriter in a purchase and sale.

1. the process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).

where an insurance company takes into account known facts like your age, sex and health, in order to assess the likelihood of you making a claim on the policy. your insurance premiums are calculated after taking these factors into consideration.

a bank or other financial institution"s guarantee to a company that it will buy a certain number of shares in a company"s new issue or rights issue, should the issue not be fully subscribed by other investors.from the company"s point of view, having its new issue underwritten is a form of insurance. it means that if it has priced an issue too high and the market shuns it, the company can still be sure that it will get money from the new issue.of course, security comes at a price. underwriters charge a fee for the back-up they provide. if the new issue is very popular, it will pocket that fee and make a handsome profit. occasionally, they get badly burned. new issues underwritten immediately before the 1987 stock market crash lost a lot of money.sometimes companies do a rights issue at a deep discount to reduce the underwriting fees.

Art Investing

Underwriting

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