underwriter

(noun)

An entity which markets newly issued securities

Related Terms

  • bank
  • credit
  • FINRA

Examples of underwriter in the following topics:

  • Underwriter

    • Investment bank underwriters help securities issuers lessen their risk in exchange for a premium.
    • However, investment banks are involved in the underwriting of all types of securities, not just stock.
    • That is where the job of the security underwriter comes in.
    • The underwriter offers to take on some of the risk of the offering in exchange for a premium.
    • There are sometimes multiple investment banks involved in the underwriting of a security.
  • Employment in Finance

    • In banking, employees may serve the range of roles needed to run banks, from tellers to financial planners and underwriters to wealth managers.
    • In insurance, there are insurance brokers and underwriters as well as actuaries and a host of other positions such as insurance claims investigators and agents.
  • The Glass Steagall Banking Act

    • Politicians and the public thought commercial banks should not underwrite new stock and bonds for corporations because they believed banks were underwriting "risky" securities.
    • Consequently, borrowers could pay more for issuing new securities than they would pay if commercial banks could underwrite new securities.
  • International Credit Rating Agencies

    • Coface, France's export credit underwriter, is another international credit-rating agency.
  • The Cost of New Common Stock

    • Flotation costs include all costs of issuing the securities, such as banker's fees, legal fees, underwriting fees, filing costs, etc.
  • Commercial Banks

    • Commercial banks engage in the following activities: the processing of payments; accepting money on term deposit; lending money by overdraft, installment loan, or other means; providing documentary and standby letters of credit guarantees, performance bonds, securities underwriting commitments and other forms of off- balance sheet exposures; and the safekeeping of documents and other items in safe deposit boxes.
  • Securities Act of 1933

    • Section 4 of the Act limits its application to public offerings (according to SEC guidelines, more than 25 offerees) by issuers and their underwriters (i.e. investment banks).
    • Any offering of the securities by the issuer or underwriter must thereafter be accompanied by the prospectus.
  • Types of Stock Market Transactions

    • Most companies undertaking an IPO do so with the assistance of an investment banking firm acting in the capacity of an underwriter.
    • Underwriters provide a valuable service, which includes help with correctly assessing the value of shares (share price), and establishing a public market for shares (initial sale).
  • Common and Preferred Stock

    • There are capital costs associated with equity financing, including accounting and legal costs, as well as underwriting and filing fees.
  • Wall Street Crash of 1929

    • Congress passed the Glass–Steagall Act, mandating a separation between commercial banks, which take deposits and extend loans, and investment banks, which underwrite, issue, and distribute stocks, bonds, and other securities.
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