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
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Acting as the underwriter in the issue of new securities for a firm. Bloomberg Financial Dictionary
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An arrangement under which a company is guaranteed that an issue of shares will raise a given amount of cash, because the underwriters, for a commission, undertake to subscribe for any of the issue not taken up by the public. Exchange Handbook Glossary
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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. They charge commission for this service. London Stock Exchange Glossary
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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 demand.
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underwriting UK US /ˈʌndəˌraɪtɪŋ/ noun [U]
► FINANCE, INSURANCE the act of giving financial support for an activity, and for paying any costs if it fails: »
The group announced a £50 million investment in insurance underwriting.
Financial and business terms. 2012.