What is meant by underwriting agreement?
A written contract between a company planning a public securities issue and the managing underwriter of that issue. The agreement specifies the particulars of the issue such as dates, fees, offering price, and the responsibilities of the parties. Compare agreement among underwriters.
What does it mean if something is underwritten?
Underwriting is the process through which an individual or institution takes on financial risk for a fee. The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium.
How do you use underwrite in a sentence?
(1) No bank would be willing to underwrite such a loss. (2) The record company may underwrite the costs of a band’s first tour. (3) The government has agreed to underwrite the project with a grant of ￡5 million. (4) They have undertaken to underwrite a large proportion of the supermarket’s deficits.
How do you use underwriting in a sentence?
Underwriting sentence example
- In traditional underwriting , a person must look at all of your information to assess risk.
- Make sure we baseball’s mariners play from underwriting discipline.
- Applicants must possess previous Mortgage Underwriting experience, a minimum of 2 years and possess a current mortgage mandate.
What is underwriting in real estate?
Underwriting simply means that your lender verifies your income, assets, debt and property details in order to issue final approval for your loan. An underwriter is a financial expert who takes a look at your finances and assesses how much risk a lender will take on if they decide to give you a loan.
What’s another word for underwriting?
In this page you can discover 28 synonyms, antonyms, idiomatic expressions, and related words for underwriting, like: insuring, covering, supporting, subscribing, sponsoring, signing, guaranteeing, endorsing, bankrolling, backing and refunding.
What is a synonym for underwrite?
(also indorse), patronize, sponsor, support.
How do you use random sampling in a sentence?
1. We asked a random sample/selection of people what they thought. 2. The interviews were given to a random sample of students.
What are the types of underwriting agreement?
There are several different kinds of underwriting agreements: the firm commitment agreement, the best efforts agreement, the mini-maxi agreement, the all or none agreement, and the standby agreement.
What is’underwriting agreement’?
What is ‘Underwriting Agreement’. An underwriting agreement is a contract between a group of investment bankers who form an underwriting group or syndicate, and the issuing corporation of a new securities issue.
What is included in an underwriting agreement?
The underwriting agreement contains the details of the transaction, including the underwriting group’s commitment to purchase the new securities issue, the agreed-upon price, the initial resale price, and the settlement date. A best-efforts underwriting agreement is mainly used in the sales of high-risk securities.
What is a best efforts underwriting agreement?
A best-efforts underwriting agreement is mainly used in the sales of high-risk securities. There are several different kinds of underwriting agreements: the firm commitment agreement, the best efforts agreement, the mini-maxi agreement, the all or none agreement, and the standby agreement.
What is a standby underwriting agreement?
A standby underwriting agreement is used in conjunction with a preemptive rights offering. All standby underwritings are done on a firm commitment basis. The standby underwriter agrees to purchase any shares that current shareholders do not purchase. The standby underwriter will then resell the securities to the public.