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

Constraints of venture capital in us, Constraints of Venture Capital in US ...

Constraints of Venture Capital in US 1. Require of rich investors in US, thus inadequate equity capital. 2. Inefficiencies of stock market - NSE is investors and inefficien

Becoming a tutor, How to become a tutor in this platform?

How to become a tutor in this platform?

Debtors or accounts receiver turnover, Debtors or Accounts Receiver Turnove...

Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover  = Annual credit sales/Average debtor The ratio signify the number of ti

What is holding period return, What is Holding Period Return/Return ...

What is Holding Period Return/Return Holding period yield (HPY) measures the total return from an investment during a given time period in which asset is held by the investo

Determine the critical path and the expected completion, The information in...

The information in the table below is available for a large fund-raising project. a. Determine the critical path and the expected completion time of the project. b. Plot the

Overlaps and conflicts, Overlaps and Conflicts Overlaps - whenever...

Overlaps and Conflicts Overlaps - whenever attaining ONE MEANS achieving the another Conflicts - whenever attaining ONE CANNOT permit the achievement of another.

Bird-in-hand theory, Bird-in-hand Theory Advanced via John Leitner in ...

Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend

Example of quantity discounts, Example of Quantity Discounts Consider ...

Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin

Retirement, Ask quQUESTION 1 1. In the ratio test used to determine whether...

Ask quQUESTION 1 1. In the ratio test used to determine whether a qualified plan is nondiscriminatory, what is the minimum percentage of nonhighly compensated employees who must be

In 1899, If the winner’s prize increases at the same rate (8.43%), what wil...

If the winner’s prize increases at the same rate (8.43%), what will it be in 2041?

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