Underwriting Agreement
Financial & Investment Dictionary:
Underwriting Agreement
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underwriting agreement
agreement between a corporation issuing new securities to be offered to the public and the managing underwriter as agent for the underwriting group .
Underwriting agreement
The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group.
Underwriting Commission ...
Underwriting agreement
An agreement to accept the risks under an insurance contract. The underwriters sign the agreement and indicate how much of the risk they are prepared to take and they receive a proportionate part of the premium.
Eastern underwriting agreement: A firm commitment underwriting in which syndicate members are liable for their share of any unsold securities, regardless of how much of their allotment they sold.
Underwriting Agreement
An agreement established between the managing underwriter, as agent for the underwriting group, and the corporation issuing new securities--also termed the "purchase agreement" or "purchase contract".
Underwriting Agreement
A contract between a group of investment bankers who form an underwriting group or syndicate, and the issuing corporation of a new securities issue.
A clause in an underwriting agreement allowing the underwriter to cancel the agreement, should a law, event or major financial occurrence transpire that adversely affects financial markets in general or the issuer in particular.
Green Shoe
An underwriting agreement provision stipulating that, in the case of huge public demand, additional shares will be authorized by the issuer for distribution by the syndicate.
See: Underwrite ...
A provision in the underwriting agreement of a share issue for the sale of additional shares to meet unexpectedly high demand. It is a colloquial term for the over-allotment option and so named after the Green Shoe Company which first used it.
(This agreement is to be distinguished from the bond purchase agreement, the contract of purchase or the underwriting agreement, which is between the account and the issuer.) This agreement is generally prepared by underwriters' counsel, ...
Compare: Underwriting agreement. Agreement corporation Corporation chartered by a state to engage in international banking: so named because the corporation enters into an "agreement" with the Fed's Board of Governors that it will limit its ...
Compare: Underwriting agreement. Ahead of itself In context of general equities, refers to equities that are overbought or oversold on a fundamental basis. Ahead of you Used for listed equity securities.
underwriting agreement An agreement between a firm issuing new securities and the lead underwriter... underwriting group A temporary association of investment bankers brought together by the original...
The syndicate works under an underwriting agreement. The lead underwriter, also known as "managing underwriter" or "syndicate manager", ...
Underwriting agreement
Underwriting Commission
Underwriting Experience Report
Underwriting Experience Report (insurance)
Underwriting fee
Underwriting income
Underwriting Medical History (Insurance)
Underwriting profit
Underwriting Screen (insurance) ...
Greenshoe
A clause within the underwriting agreement that provides for additional securities to be issued above the original issue size if demand exists.
Gross
An amount before deduction of tax or commissions.
The agreement among underwriters is also sometimes referred to as the underwriting agreement. Compare: SELLING GROUP AGREEMENT. See: SYNDICATE; SYNDICATE ACCOUNT LETTER; UNDERWRITING AGREEMENT.
One bank, appointed by the group as lead manager, signs the underwriting agreement that specifies all the details of the issuer-underwriter relationship (including pricing), ...
A letter from an independent auditor in securities underwriting agreements to assure that information in the registration statement and prospectus is correctly prepared to the best of the auditor's knowledge.
Commercial bank ...
is extremely rare, but without it the underwriters would have been left holding much of the issue at a loss, and they might have sought to escape their obligations by invoking the 'material adverse change' clause in the underwriting agreement.
The purchase for resale of a security issue by one or more investment dealers. The formal agreement between the investment dealer and the corporation issuing the securities is called the underwriting agreement. A term synonymous with underwriting.
of a syndicate that defines the members' proportionate liability, which is usually limited to and based on the participants' level of involvement. The contract outlines the payment schedule on the settlement date. Compare: Underwriting agreement.
Back to top Greenshoe Option A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer.
 See also: Banks, Lead underwriter, Settlement Date, Margin account, Redeemable
  
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