Underwriting
Underwriting is the process by which an individual or institution takes on financial risk for a fee, often associated with the issuance of new shares.
Benefits
Underwriting takes on financial risk, essential for supporting new share issues.
Frequently Asked Questions
What is the process of underwriting?
The underwriting process involves assessing the risks and terms of issuing securities, loans, or insurance.
What is the meaning of underwriting?
Underwriting is the process by which an institution assesses the risk of providing financial services, such as loans or insurance, and determines the terms for offering them.
Is the process through which an individual or institution takes on financial risk for a fee?
Yes, this process is called underwriting, where a person or institution takes on financial risk for a fee, usually when issuing securities.
Key Takeaway
Underwriting involves taking on financial risk, crucial for facilitating new share issuances.