Equity Capital Markets

Underwriter

Definition

What is Underwriter?

A firm that helps structure and sell a securities offering and may commit to purchase unsold securities.

Example in practice

The underwriter buys the issue from the company and resells it to investors.

Keep learning

The first public sale of a private company's shares, after which the shares may trade on an exchange.

A sale of newly issued securities in which the issuer receives the proceeds.

A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

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