Related Words

Managing Underwriter: The leading firm in an underwriting group, which originates the deal and acts as an agent for the group.

Agreement Among Underwriters: A contract amoung participating members of a syndicate that defines the members' proportionate liability, which is usually limited to and based on the participants' level of involvement. The . . . View Full Definition

Underwriter: The company that assumes responsibility for the risk, issues insurance policies and receives premiums.

Underwriters Laboratory (UL): An independent testing organization which examines and tests devices, systems and materials with particular reference to life, fire and casualty hazards. It develops standards for motor and . . . View Full Definition

UL (Underwriters Laboratories): An independent testing agency that checks electrical devices and other components for possible safety hazards.

Lead Underwriter: When a company wants to raise capital by selling securities to investors, it partners with an investment bank, known as the lead underwriter. That bank has the primary responsibility for org . . . View Full Definition

Stag: The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange re . . . View Full Definition

Underwriting Fee: This is a fee charged by the lender to evaluate whether the borrower qualifies for a mortgage loan. An underwriting fee may be charged to the borrower and shown on the Settlement Statement (HUD-1).

Pot: The portion of stock or bond issue that is returned to the managing underwriter by the participating investment bankers for sale to institutional investors.

Book Runner: The managing underwriter for a new issue. The book runner maintains the book of securities sold.