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Home > Underwriting

Underwriting is the concept of securing the sale of a new issue of stocks or bonds. If a firm has taken the risk and responsibility to sell a specific amount of securities, and it can't sell them as planned, they may have to buy them themselves.

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Underwriting may also refer to insurance; the electrical safety organization Underwriters Laboratories was founded by a group of insurers after watching the House of Electricity on a local fairground destroyed by fire due to faulty wiring.

Underwriting may also refer to financial sponsorship of a venture.

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UnderwritingUnderwriting is the concept of securing the sale of a new issue of stocks or bonds. If a firm has taken the risk and responsibility to sell a specific amount of securities, and it can't sell them as planned, they may have to buy them themselves. See also  
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