Business terms and jargon explained. Your business dictionary

What is Underwrite

This term is used in insurance and the investment industries. An underwriter is someone that agrees to pay an obligation in a given event. Example, if a ship sinks, the underwriter will pay for a replacement ship and pay all cost involved in remedying the situation.

In the investment industry, an underwriter is someone who underwrite the unsold shares in a shares issue. They will buy all unsold share.

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Term created / updated 2013-07-15 08:52:33

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