Underwriting

1.

The process of committing to purchase any securities remaining unsold after an issue.

The underwriter agrees to purchase any unsold securities.

2.

More generally, providing guarantees or insurance, in return for a fee or for other consideration.

3.

Effectively providing guarantees or insurance, without receiving full consideration in return.

See also

• Consideration
• Greenshoe option
• Insurance
• Security
• Sub-underwriter
• Underwriting group
• Write