A company or other entity that administers the public
issuance and distribution of securities from a corporation
or other issuing body. An underwriter works closely with
the issuing body to determine the offering price of the
securities, buys them from the issuer and sells them to
investors via the underwriter's distribution network.
Underwriters generally receive underwriting fees from their
issuing clients, but they also usually earn profits when
selling the underwritten shares to investors. However,
underwriters assume the responsibility of distributing a
securities issue to the public. If they can't sell all of
the securities at the specified offering price, they may be
forced to sell the securities for less than they paid for
them, or retain the securities themselves.
Underwriters are usually the issuing house or merchant bank
or large investment banking firms i.e. financial
institutions such as insurance companies and pension funds
who either issue share and take risk of buyng share. Their
key functions in an IPO are:
* Providing advice (pricing and timing)
* Buying issue from the company (risk taking)and
* Selling the issue to the public
underwriter is the person who take the share of company for
sale it.they take charge 4 that.
if they could nt sale the taken shares at this condition
they hv to purchase that shares and pay price to company.
we can also say that they give gurantee of selling of shares
Underwriter is the person who take risk on behalf of the
institution, simply his profile is to 'assess the quality &
serve the quantity".
Underwriter bridges the gap between customer & company.
Generally, in Insurance & Mortgage industry such pofile
holder are known as 'Underwriter" while in Finance &
banking sectors they are called as "Credit Analyst'.
They direct plays with the profit figures of company,
without underwriting a company 100% introduced with losess,
claims, default, forges & counterfeit.
A set all institution and agencies that provides a commitment to take up issue of securities in the events of a failure of the issue to get full subscription from the public, are known as 'underwriters'.
hiiii im rishi...i want to ask you dat im student of
commerce.i completed my b.com with 60% now i'd like ask u
dat MFC or MBA finance which is better for me? i'hv good
communication skills with computer knowledge and im good in
accounts..but i didnt studied about EAFM so plz tell me MFC?
MBA finance wants to how much hardwork and wat's career
apportunities in both? can u suggest me dat in our
rajasthan there is no scope...but in delhi and other metro
cities it has.....
Hi, I did MBA Finance in 2007 but i am from science back
ground. And for the past 3 yrs i worked as im Admin and as
a IT recruiter. Could any tell me what are the questions
generally asked for MBA Finance position? i am looking to
pursue a career in Finance