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 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.
- 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).
A financial firm (usually an investment bank) that buys new issues of securities from a company and resells them to investors. The 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 ...
An arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. s 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.
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.
The investment banking firm that brought the company public.
Member Options ...
Underwriter short selling and price stabilization
Greenshoe option ...
" 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 ...
- 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.
: 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.
: An 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 in the issue of new securities for a firm.
This is a securities firm that helps a company go public.
: 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.
(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 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.
See also: Underwrite, Market, Stock, Securities, Trading