Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Underwriting
n. 1. The act of assuming a risk by insuring it; the insurance of life or property. See INSURANCE. 2. The act of agreeing to buy all or part of a new issue of securities to be offered for public sale. - underwrite, vb.
best-efforts underwriting
Underwriting in which an investment banker agrees to direct, but not guarantee, the public sale of the issuer's securities. ( The underwriter, or selling group, sells the securities as agent for the issuer, and any unsold securities are never issued.
best-efforts underwriting.
See UNDERWRITING,
firm-commitment underwriting
Underwriting in which the underwriter agrees to buy all the shares to be issued and remain financially responsible for any securities not purchased. ( The underwriter, or underwriting group, buys the securities from the issuer and resells them as principal. In this type of underwriting, securities that cannot be sold to the public are owned by the underwriter, and the issuer is paid for those securities as well as the others.
standby underwriting
Underwriting in which the underwriter agrees, for a fee, to buy from the issuer any unsold shares remaining after the public offering. - Also termed strict underwriting.
standby underwriting agreement
See STANDBY COMMITMENT.
strict underwriting
See standby underwriting under UNDERWRITING.
underwriting agreement
an agreement between a corporation and an underwriter covering the terms and conditions of a new securities issue.
underwriting spread
See SPREAD,