Underwriting Agreement

Dictionary Says

Definition of 'Underwriting Agreement'

A contract between a group of investment bankers who form an underwriting group or syndicate, and the issuing corporation of a new securities issue. The underwriting agreement contains the details of the transaction, including the underwriting group's commitment to purchase the new securities issue, the price that the underwriting group will pay to the issuing corporation and the initial resale price.
Investopedia Says

Investopedia explains 'Underwriting Agreement'

The underwriting agreement can be considered the contract between a corporation issuing a new securities issue and the underwriting group that has agreed to purchase and then resell the issue for a profit. The purpose of the underwriting agreement is to ensure that all of the players understand their responsibility in the process, thus minimizing potential conflict.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Investment Banker

    An individual ...
  2. Investment Bank - IB

    A financial ...
  3. Lead Underwriter

    A investment ...
  4. Initial Public Offering - IPO

    The first sale ...
  5. Syndicate

    A professional ...
  6. Pooling Of Interests

    A method of ...
  7. Annual General Meeting - AGM

    A mandatory, ...
  8. Shareholder

    Any person, ...
  9. Perp Walk

    A slang term ...
  10. Golden Parachute

    Substantial ...

Articles Of Interest

  1. Wanna Be A Bigwig? Try Investment Banking

    A career in this high-stress field can be very rewarding for the right person. Find out if you have what it takes.
  2. The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  3. How To Make $1 Million In Finance

    Find out what it takes to get a spot in these ultra-lucrative areas of finance.
  4. Financial Career Options For Professionals

    Find out if spreading your wings to try a new career will make you soar or fall flat.
  5. Making It Big On Wall Street

    Read about some of the most glamorous Wall Street jobs - and what it takes to land one.
  6. Getting An Investment Bank Job During A Recession

    Even in a recession, investment banks are seeking new talent. Learn what will set you apart from the crowd!
  7. Top Things To Know For An Investment Banking Interview

    Without some basic knowledge, you won't get the job. Find out what you need to know and how to prepare.
  8. Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  9. The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  10. 6 Tips For Spinning A PR Nightmare

    One of the most readily available measures that organizations can employ to either avoid or reduce negative publicity is to aim for transparency.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center