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Underwrite Definition

underwrite – v : to assume financial risk as an underwriter. Investment banks are in the business of helping companies raise capital from public and private financial markets by underwriting companies’ issuances of either debt or equity securities. The act of underwriting entails the investment bank (a.k.a. underwriter) purchasing the entire security issuance from the issuing company and then reselling those securities, typically to a syndicate of institutional and/or individual investors.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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