Underwriter A merchant bank or a financial institution which guarantees to buy some or all unsold shares of a new issue offered to the public. A number of underwriters may club together to buy the unsubscribed shares to sell them subsequently. A new issue of shares devolves on the underwriter only if a minimum stipulated number has been subscribed.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress