who are underwriters? what is their work?
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Answer / chaitanya
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.
(Or)
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.
| Is This Answer Correct ? | 40 Yes | 5 No |
Answer / dpk
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
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / k. pullarao
Underwriter is someone who takes financial risk in return
for fee on behalf of the issuer. And their work is rasising
capital from the investors/public to the corporates or
government institutions.
| Is This Answer Correct ? | 8 Yes | 5 No |
Answer / ashish
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
ashish.miba@gmail.com
2
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / manju
Underwriters are mainly financial institutions which
promises to purchase a particular company's shares if they
are not sold in particular time.
| Is This Answer Correct ? | 6 Yes | 6 No |
Answer / nitin pandey, bajaj allianz
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.
| Is This Answer Correct ? | 5 Yes | 5 No |
Answer / mazhar
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'.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / nandita reddy
A financial institution which, in return for a fee or
commission, agrees to purchase unsold shares in a new
issue, if the issue is not fully subscribed.
| Is This Answer Correct ? | 11 Yes | 13 No |
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