underwrite

underwrite definition - business

underwrite

  1. To assume the risk of securities' sale by purchasing the securities from the issuer for resale to the public. Investment bankers often assume this underwriting function in order to guarantee that the issuer will receive all the funds needed from the sale. See also best-efforts basis 1, hot issue, investment bank, peg 1, standby underwriting.
  2. In insurance, to accept a risk in return for premium payments by the insured.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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