underwriting
2
7.3
- noun
- /ˈʌndərˌraɪtɪŋ/
- Specialized
:
suscripción de valores
- Investment banks play a crucial role in underwriting new public offerings by guaranteeing the sale of shares.
- underwriting of securities
Examples
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Purl (1996) finds that underwriting securities in-house did not lead to more conflicts of interest than doing so in a separate unit.
Academic text (1998) -
The great underwriting houses included White Weld, Kuhn Loeb, Lehman Brothers, First Boston, and Goldman Sachs, none of which maintained a large retail brokerage operation, and few of which had trading operations of any size.
Blog text (12) -
With a deal like that, why do they even get the fee for underwriting?
Blog text (19) -
In the early 1980s, there were no true U.S. "universal banks" that combined traditional commercial banking with capital markets and underwriting activities.
Blog text (10) -
Trust got a $100,000 underwriting fee that they took in Coca-Cola stock, and it turned out to be a pretty good investment for them.
Academic text (2014) -
The set of permissible activities was also expanded to include other activities such as the underwriting of corporate bonds and equities, provided that some more stringent firewalls were set up.
Academic text (1998) -
It's still ahead of the game, though, because it can sell those municipal bonds through the state-owned bank, which will charge much lower underwriting fees than JP Morgan et al., and which will make the bonds available to small individual buyers, ensuring a larger market.
Blog text (19) -
But that trading was not a major target of the Glass-Steagall Act is a reasonable inference from the other three provisions that deal with various aspects of the prohibition against commercial banks engaging in underwriting securities but do not mention dealing or trading.
Blog text (12) -
Its aim is not to provide tangible capital formation or rising living standards, but to generate interest, financial fees for underwriting mergers and acquisitions, and capital gains that accrue mainly to insiders, headed by upper management and large financial institutions.
Blog text (34) -
In the IPO, the underwriting banks—there were lots of them, but let's just call them all "Morgan Stanley," for simplicity's sake—sold 484 million shares of Facebook at $38 each.
Blog text (19)
How Committed
Surface Forms
Morphology
underwriting = underwrite (opaque) = under + write + ing
Formed by regular -ing nominalization of the verb 'underwrite'.
Etymology
Underwriting also comes from bankers who promised to buy unsold shares by signing under the offer. That act of 'writing under'—under- ('below') and write ('to sign')—is why the word now means guaranteeing and arranging the sale of new securities.