Underwriting


Underwriting
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).

2. The process of issuing insurance policies.

The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • underwriting — index coverage (insurance) Burton s Legal Thesaurus. William C. Burton. 2006 underwriting …   Law dictionary

  • Underwriting — Un der*writ ing, n. The business of an underwriter, [1913 Webster] …   The Collaborative International Dictionary of English

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  • underwriting — The name used to describe the process of analyzing and structuring a proposed loan. Good underwriting is the most important aspect of secured lending. Outside of banking, the term primarily refers to the purchase of risk. American Banker Glossary …   Financial and business terms

  • Underwriting — Underwrite Un der*write , v. t. [imp. {Underwrote}, Obs. {Underwrit}; p. p. {Underwritten}, Obs. {Underwrit}; p. pr. & vb. n. {Underwriting}.] 1. To write under something else; to subscribe. [1913 Webster] What addition and change I have made I… …   The Collaborative International Dictionary of English

  • Underwriting — Acting as the underwriter in a purchase and sale. The New York Times Financial Glossary * * *    A form of insurance whereby an underwriter agrees for a fee to take up a specific quantity of a new issue at the issue price if there is insufficient …   Financial and business terms

  • underwriting —   sottoscrizione   L accettazione del contenuto e delle clausole presenti in un contratto. In campo assicurativo, la sottoscrizione della polizza e il conseguente pagamento di un premio da parte dell assicurato obbliga la compagnia d… …   Glossario di economia e finanza

  • underwriting — un·der·write || ÊŒndÉ™raɪt v. give one s signature and thus receive liability; financially sponsor, support through donations; guarantee the sale of shares (Finance); provide insurance; write underneath or at the end of (a document) …   English contemporary dictionary

  • Underwriting — RadioPP Method by which noncommercial stations seek financial support from commercial sponsors …   Audio and video glossary


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