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Home > QFINANCE Dictionary > Definition of underwriting commission

Definition of

underwriting commission

Stockholding & Investments

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"

underwriting commission - Related Articles
  • Financial Steps in an IPO for a Small or Medium-Size Enterprise

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    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

  • IPOs in Emerging Markets

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    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
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    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

  • Equity Issues by Listed Companies: Rights Issues and Other Methods

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    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
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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.

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