- underwriter
- Any person, banker, or syndicate that guarantees to furnish a definite sum of money by a definite date to a business or government entity in return for an issue of bonds or stock. A professional firm (e.g., investment banker) that handles the marketing of a corporate or government security offering to the public; it either buys all of a new security offering for a specified price and then sells it to the public, either directly or through dealers, or takes a commission on the securities it actually sells. Term refers to any person who has purchased from an issuer with a view to, or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking; but such term shall not include a person whose interest is limited to a commission from an underwriter or dealer not in excess of the usual and customary distributor's or seller's commission. Investment Company Act, No. 2, 15 U.S.C.A. No. 80a-2(40).See also investment banker- underwrite.In insurance, the party assuming a risk in return for the payment of a premium (the insurer)+ underwriterParty (insurer) who assumes a risk in return for the payment of a premium.See insurer@ underwriting agreementAgreement between corporation and underwriter covering terms and conditions of new issue of securities to be offered to public.See underwriter@ underwriting spreadThe difference between the selling price to the public of a new security offering and the proceeds received by the offering firm. This is also termed an underwriting discount@
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.