Definition of 'Underwriting Group'
A temporary association of investment bankers who wish to purchase a new issue of securities from an issuer in order to distribute the issue to investors at a profit. The underwriting group shares the risk and aid in the successful distribution of the new securities issue.
Also called a purchase group, distributing syndicate or syndicate.
Investopedia explains 'Underwriting Group'
An underwriting group manages the distribution of a new securities issue. The group purchases the issue from the issuing corporation at a specified price and then resells the issue to investors in order to make a profit. The profit is the difference between the purchase price and the resale price; this is known as the underwriting spread.