In investment banking, [1] an underwriting contract [2] is a contract between an underwriter and an issuer of securities.
The following types of underwriting contracts are the most common:
Stand-by underwriting, [3] also known as strict underwriting or old-fashioned underwriting is a form of stock insurance: the issuer contracts the underwriter for the latter to purchase the shares the issuer failed to sell under stockholders' subscription and applications. [4]
In investment banking, [1] an underwriting contract [2] is a contract between an underwriter and an issuer of securities.
The following types of underwriting contracts are the most common:
Stand-by underwriting, [3] also known as strict underwriting or old-fashioned underwriting is a form of stock insurance: the issuer contracts the underwriter for the latter to purchase the shares the issuer failed to sell under stockholders' subscription and applications. [4]