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.

BREAKING DOWN '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.

  1. Underwriting Agreement

    An underwriting agreement is a contract between a group of investment ...
  2. Underwriter Syndicate

    An underwriter syndicate is a temporary group of investment banks ...
  3. Underwriting Spread

    An underwriting spread is the difference between what underwriters ...
  4. Underwriting Fees

    Underwriting fees are monies collected by underwriters for underwriting ...
  5. Lead Underwriter

    A lead underwriter is usually an investment bank that organizes ...
  6. Standby Underwriting

    Standby underwriting is an IPO sales agreement in which the underwriter ...
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