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Underwriting

This query is : Resolved 

03 November 2014 meaning of firm underwriting

03 November 2014 firm underwriting refer to an agreement between the underwriting agency and the issuer of the security, wherein the underwriter gives a commitment to subscribe to a given quantity of the securities.

03 November 2014 for issue of shares, debentures etc, the entity who underwrites that issue of shares/debentures etc, is called as underwriting entity. In case the issue is not fully subscribed, it is underwritten by the underwriters. In simple words, it is subscribed by underwriters.


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