Business Terms and Jargon Explained

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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