fee guaranteeing purchase of new stock a fee paid by a company to the underwriters for guaranteeing the purchase of new shares in that company.
Related definitions of "underwriting commission"
- Also called underwriting fee
The company, with the aid of lawyers, accountants, and underwriters, submits a registration statement to a regulatory body (such as the Securities and Exchange Commission (SEC) in the United States) for approval of the public offering. The registration statement is a detailed document about the company
By Hung-Gay Fung
The sale of shares in an IPO may take place using different methods. These are: Dutch auction, firm commitment, best efforts, bought deal, or self distribution of stock. When the IPO is successful and the underwriters sell the shares, they are rewarded by a commission calculated as a certain
By Janusz Brzeszczynski
In the primary market, governments, companies, or public sector organizations can obtain funding through the sale of a new stock or bonds. These are normally issued through securities dealers and banks, which underwrite the offered stocks or bonds. The issuers earn a commission, which is built
The majority of rights issues are underwritten. This means that the investment bank arranging the issue will find sub-underwriters, usually investing institutions, to buy the shares at the offer price, or will buy them itself if necessary. The deeper the discount, the less likely
By Seth Armitage
Definitions of ’underwriting commission’ and meaning of ’underwriting commission’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’underwriting commission’ and other financial terms with our online QFINANCE Financial Dictionary.