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GLOSSARY: Enter search term:
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Glossary Term: UNDERWRITING

Definition(s) for UNDERWRITING:


1. ) the process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value.

2. ) The process of evaluating a loan application to determine the risk involved for the lender. It involves an analysis of the borrower's ability and willingness to repay the debt and the value of the property.

3. ) An arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. Underwriters undertake to subscribe for any of the issue not taken up by the public. They charge commission for this service.


See Also:
ALL-OR-NONE UNDERWRITING, UNDERWRITING COMMISSION, UNDERWRITING FEE, UNDERWRITING INCOME, UNDERWRITING SYNDICATE, COMPETITIVE UNDERWRITING OR SALE, NEGOTIATED UNDERWRITING, FIRM COMMITMENT UNDERWRITING, UNDERWRITING AGREEMENT, UNDERWRITER (SEE UNDERWRITING), INSURANCE UNDERWRITING



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