Education and Career Forum

what is under writer please define it in easy laguage ?

Underwriter is basically a company. It administers the public issuance and distribution of securities from a corporation or it may be any other issuing body. The offering Price of the securities is determined by the Underwriter by working hardly. Underwriter also buy them from the issuer and sell them to investord via distribution network.

The UNDERWRITER has 3 senses:
1. a banker who deals chiefly in underwriting new securities
2. an agent who sells insurance
3. a financial institution that sells insurance

in easy language,underwriter means:-

1. The procedure by which an underwriter brings a new security issue to the investing public in an offering.

2. The process of insuring someone or something.

3.The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.

thanx..