A firm that brings out new securities issues, agreeing to purchase and resell them. Often a lead underwriter and several other underwriters will work together on a given issue.
Generally, an investment bank that guarantees prices on securities to corporations and bears the risk of selling the securities for a profit to the public.
RELATED TERMS ...
A company or an individual who administers the public issuance and distribution of securities from an issuing body or the corporation
An underwriter or a Broker-dealer who trades with other broker-dealers, rather than with the Retail investor.
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Eating Stock - Eating stock is a term used by investment companies and underwriters. When not enough buyers are found to purchase stock, the underwriter is forced to purchase the stock himself.
Underwriter - a firm that buys securities from the issuer and then resells them to investors.
An investment banker who purchases shares of a company that is going public, then resells them to investors for a higher price. When an underwriter brings shares of a new company to market it is called an initial public offering (IPO).
Underwriter A financial firm (usually an investment bank) that buys new issues of securities from a company and resells them to investors. The underwriter takes on risk by assuring the proceeds of the sale for the issuing company.
Underwriters come in: They work to set fair market value and initial stock price, generate interest in the company and the IPO and help develop the prospectus ...
Underwriter (see 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.
Underwriter: An investment firm that purchases a security directly from its issuer for resale to other investment firms or the public or sells for such issuer to the public.
Underwriter (Investment Banker)
An intermediary between the offering institution and the investing public, bringing the new issues to the market while charging the issuer a fee for the services provided.
Underwriter Discount Underwriters buy the to be issued securities at a reduced (discounted) price. This discount is usually measured as a percent of the price of the issue.
Undiversifiable Risk See Market Risk.
Underwriter The investment banking firm that brought the company public.
Member Options ...
Underwriter short selling and price stabilization
Greenshoe option ...
underwriter " a firm, normally a brokerage, that agrees to buy the new issue of a company at a fixed discounted price, which they will then sell to the public at retail value ...
Investment banker who singly as a member of an underwriting group or syndicate, agrees to purchase a new issue of securities from an issuer and distribute to investors, making a profit on the underwriting spread.
UNSYSTEMATIC RISK ...
Underwriter - A company that purchases securities from an issuer to resell to the public.
Unlisted Security - Any security that does not trade on an organized exchange.
The securities dealer who purchases a bond or note issue from an issuer and resells it to investors.
Underwriter: Refers to the investment banker who alone or as a member of an underwriting group or syndicate agrees to purchase a new issue of securities from an issuer and distribute them to its investors, ...
Underwriter : To assume risk of buying a new issue of securities from the issuing corporation or government entity and reselling it to the public.
Underwriter: An underwriter is the firm that agrees to buy an issue of securities on a given date and at a given price and who will then usually resell the securities through a distribution network.
The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues.
The brokerage house that is responsible for IPO.
Leveraged Buy Out ...
When an underwriter can't find buyers for a stock and therefore has to buy them for his own account.
EASDEasy moneyEating stockEBAEBIAT ...
A financial institution that assists in the issue of new securities by agreeing to purchase any unsold securities, thereby guaranteeing that they will be fully ...
Underwriters involved with the Twitter IPO aimed to price the social network's stock at USD 27, barring any last-minute hitches.
Early Twitter investors double on consumer web start-ups ...
See: Gross spread
Acting as the underwriter in the issue of new securities for a firm.
This is a securities firm that helps a company go public.
Underwriter: brokerage house participating in an IPO.
Uptick: a stock trade executed at a higher price than the previous trade.
Uptrend: stock price is trending higher.
UNDERWRITER'S DISCOUNT. The commission paid to the underwriter out of the gross proceeds of an offering.
Underwriter (Investment Banker) - In a municipal underwriting, a brokerage firm or bank that acts as a conduit by taking the new issue from the municipality and reselling it. In a corporate offering, the underwriter must be a brokerage firm.
The underwriters in consultation with the company decide on the basic terms and structure of the offering well before trading starts, including the percentage of shares going to institutions and to individual investors.
In order to sell its shares to the public, a company first needs to retain the services of an investment banker to underwrite the issue. The role of the underwriter is to raise capital for the issuing company.
The underwriters may say, "You know, we want the stock to sell for $25 per share because that seems affordable so we are going to cut the company into 440,000 pieces, ...
The underwriter sets the offering price based on the amount of capital the company wants to raise and the level of demand from investors. The opening price is set by supply and demand.
The underwriters play a vital roles in insurance business. Why there are differences in premiums paid by insurance companies?
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agreement among underwriters (investment & finance)
agricultural futures (investment & finance)
AICPA (investment & finance)
AIMR (investment & finance)
air pocket (investment & finance)
air pocket stock (investment & finance) ...
An investment banker who assumes the risk of bringing a new securities issue to market.
One major player that is paid is the underwriter, or the investment bank hired by the company to serve as a middleman between the company and investors.
An agreement an underwriter makes to act as an agent between an issuing company and investors.
Blitzkrieg Tender Offer ...
Agreement among underwriters: The contract that governs the syndicate members in a negotiated offering.
Agreement of limited partnership: The contract between the general partners and the limited partners that governs the limited partnership.
Institute of London Underwriters (insurance term)
Mass Merchandising (insurance term)
National Association of Independent Insurers (NAII) (insurance term) ...
[ITDS] account or underwriting account An association of underwriters (headed by a manager or joint co-managers) formed in accordance with an agreement among underwriters for the purpose of purchasing an issue from an issuer and reoffering it or ...
Source: Cecile Gutscher, "SEC Is Examining Whether Some Underwriters Are Marketing Bonds at Artificially Low Yields", Wall Street Journal, 5/2/97).
The underwriter establishes the schedule for the issue, pricing of the stock, as well as the distribution of shares.
Letter of Intent: drafted between the issuing company and investment bank / underwriter.
One who arranges long-term financing by acting both as an underwriter and as an advisor.
Mutual funds, Closed-end companies, and other companies that are principally engaged in the business of investing the funds of shareholders.
An IPO is typically done through an underwriter who will act as the "sales" agent for the company. The deal may be structured through the employment of a single firm, or multiple. Typically, larger deals are underwritten by a syndicate.
For instance, the best effort contract mandates that the underwriter sells as much stock as possible at the agreed price. The all-or-none contract mandates that the investment bank sells the whole stock or the contract is considered void.
Goldman Sachs (NYSE: GS ) is the lead underwriter and will handle 3.1 million of the share sales, followed by 625,000 shares passing through the hands of UBS and the rest being handled by a stable of smaller financial firms.
Investment banker - Also known as an underwriter. The middleman between the corporation issuing new securities and the public.
Also known as an underwriter. The middleman between the corporation issuing new securities and the public. The usual practice is for one or more investment bankers to buy outright from a corporation a new issue of stocks or bonds.
During this time, also known as the quiet period, investment bankers and underwriters aren't permitted to discuss the issue with the public.
The person who values a company is called an 'underwriter'. So they approach an underwriter who checks their past records, future prospects, background of the promoters etc, ...
Flipping: The practice of purchasing shares in an offering from the underwriter of the offering and then quickly selling them to individual investors at higher prices.
Yield burning is a method of financing municipal bonds which involves an underwriter placing large markups on US Treasury bonds used to compensate investors while waiting for repayment of old bonds after issuance of the new bonds.
An agreement allowing the lead underwriter to buy additional shares of an IPO at the offering price after the IPO begins trading.
Gross profit divided by sales.
Since the underwriter is also the market maker, (for Nasdaq stocks) they know exactly how many shares its institutional clients want to sell. They may even counsel clients to control the available supply.
reach a point that they need a lot of capital in order to grow their company at a rapid rate, they can "go public" to raise capital by offering shares of their stock to the general public. The company generally sells shares to an underwriter at a ...
Underwriting - The selection process for insurance applicants. Underwriters classify applicants according to their degree of insurability and set premiums accordingly. The process also weeds out unacceptable risks and rejects them.
An over-allotment option, also known as a "greenshoe option", allows an underwriter to increase the principal amount of a bond issue when there is a strong demand for a new issue.
Underwrite - underwriting is effectively a guarantee wherein the underwriter (usually a bank, broker or financial institution) agrees to purchase a certain number of shares in the event the issue is under-subscribed for a certain fee.
BUT, it's likely restricted to the wealthiest, most active investors: "Fidelity, which will be getting an undetermined number of shares from underwriter Deutsche Bank, says customers should have $500, ...
direct public offering (DPO) - an initial public offering that bypasses the traditional underwriter and offers shares directly to the public over the Internet. Also called an online stock offering.
GuideStone Funds shares are distributed by Foreside Funds Distributors LLC, a registered broker-dealer and underwriter of the funds, 400 Berwyn Park, 899 Cassatt Road, Berwyn, PA 19312.
Fund Information ...
Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public's perception ...
Buyer holds the right to exercise warrants or options, but doesn't do so. Instead, they sell short the stock and use the options or warrants as insurance. This was popular among VSE underwriters in the 1980s-1990s ...
The purchase for resale of a new issue of securities by an investment dealer or group of dealers who are also known as underwriters. The formal agreements for these transactions are called underwriting agreements.
Lloyds of London is the location of a very large percentage of all the reinsurance undertaken globally. The underwriting is carried out by small groups - known as syndicates - of which there are many, as well as underwriters and agents all housed in ...
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In addition, a lot of company information, such as earnings, must be publicly available and a great deal of effort is expended keeping investors informed about the company. The company must also pay independent underwriters, attorneys, ...
Speculators are very important to a market. They make it more liquid and often take the opposite side of hedgers' trades. In this way, they act as a type of insurance underwriter by bearing the risk which hedgers seek to avoid.
in all aspects of the financial services industry. Mr. Gould represents US registered investment companies, hedge funds, offshore investment companies, investment advisers, retail and institutional broker-dealers, and municipal bond underwriters.
See also: Underwrite, Market, Stock, Securities, Trading