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Underwriter Definition

underwriter – n : a financial services firm or group of firms, usually investment banks, that buys an entire debt or equity financing round or issuance from a corporation, usually at a discount (up to 6%+ for an equity issuance) and then resells it into the private or public markets. The act of buying and then reselling such a financing round, and taking on the associated financial risk, is known as underwriting.

Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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