underwriter

underwriter definition - business

underwriter

  1. An investment banker who acts to guarantee the sale of a new securities issue by purchasing the securities for resale to the public. Also called sponsor. See also agreement among underwriters, investment bank, lead underwriter.
  2. A company that accepts the risks of others. For example, many insurance companies are underwriters for casualty losses sustained by their clients.

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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