Explain the term - underwriting, Finance Basics

Assignment Help:

Explain the term - Underwriting

Underwriting is an agreement whereby underwriter promises to subscribe to a specified number of debentures or shares or a specified amount of stock in event of public not subscribing to issue. If issue is fully subscribed then there is no liability for underwriter. If a part of share issues remains unsold, underwriter would buy these shares. Hence underwriting is a guarantee for the marketability of shares.

 


Related Discussions:- Explain the term - underwriting

Present value of a lump sum - dcf technique, Present Value of a Lump Sum - ...

Present Value of a Lump Sum - DCF Technique Generally an investor would want to know how much he or she would stop currently to get a provided amount in year 1, 2, ... n.  In

Budget, Why good judgement is important when making budgeting decisions

Why good judgement is important when making budgeting decisions

Foreign trade balance, Foreign Trade Balance If the Government buys or...

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source

Calculate the volume of sales to earn profit, From the following informatio...

From the following information related to XYZ Ltd.; you are required to find out (a) contribution (b) Break-even point in units (c) Margin of safety, (d) Profit             Tota

Non-linear Break Even Analysis, International Data Systems information on r...

International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units. After 100,000 units, the market becomes saturated and the price

Valuation of share, Valuation of Share A number of parties are interes...

Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of

Role of stock exchange in economic development, Role of Stock Exchange in E...

Role of Stock Exchange in Economic Development The Roles of Stock Exchange in Economic Development are as follow: 1. Raising Capital for Businesses The Stock Exchange

Basel committee on banking supervision, Question 1: ‘The Basel II frame...

Question 1: ‘The Basel II framework provides a range of options for determining the capital requirements for, inter-alia, credit risk and operational risk to allow banks and s

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

Find the no-arbitrage cost of the european call option, Question: Suppo...

Question: Suppose that a security is presently selling for a price of $65, the nominal interest rate is 8%, and the security volatility is 0.15. a) Determine Delta of a Euro

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd