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Underwriters are the institutions/individuals who agree to buy the shares of the company in case the company is unable to sell all its shares to the public. For providing this safety, the underwriters charge a commission to the company for providing this service.

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Q: The role of an underwriter in an initial public offering?
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What is the role of underwriter in an ipo?

Underwriters are the institutions/individuals who agree to buy the shares of the company in case the company is unable to sell all its shares to the public. For providing this safety, the underwriters charge a commission to the company for providing this service


What is an underwriter?

In general terms, an underwriter is defined as a person who assesses risks to be covered by an insurance policy or a person (as an individual or company) who underwrites a security issue. In title insurance terms, the role of the Underwriter is: (a) The company insuring and issuing the title coverage ie: Chicago Title, Stewart Title, United General Title, First American, Attorneys Title Insurance Fund, etc. and; (b) The person with the local title agency who examines the title searches, county records, etc. in order to create a Title Binder or Title Commitment (intent to insure) for the property. Title insurance is the only type of insurance that is typically "underwritten" at the local level by the title agency. Most other types of insurance providers gather information about a car, person or property and then sends that information to a central office for processing and underwriting. An underwriter can also apply to financial industry as in the bank's underwriter or a securities underwriter.


Why company participate in stock exchange?

Companies participate in stock exchanges to raise money from an IPO or initial public offering. An IPO is when they divide a portion of the company up into shares and then sell those shares to a select group of individuals, mostly brokers, underwriters and people who have had some role in issuing the stock. The purpose of going public with a company is to raise capital to reinvest back into the company in hopes that after the IPO demand for the stock of the company will continue to increase thereby bringing the price of the stock up and increasing the return on investments of those who own the company and those who hold the publicly issued stock.


What are the internal role players in the management of public finance?

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What is the role of business organisations in society?

The role of business organizations are to provide products and services to the public and private sectors of the economy.

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What is the role of underwriter in an ipo?

Underwriters are the institutions/individuals who agree to buy the shares of the company in case the company is unable to sell all its shares to the public. For providing this safety, the underwriters charge a commission to the company for providing this service


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What is an underwriter?

In general terms, an underwriter is defined as a person who assesses risks to be covered by an insurance policy or a person (as an individual or company) who underwrites a security issue. In title insurance terms, the role of the Underwriter is: (a) The company insuring and issuing the title coverage ie: Chicago Title, Stewart Title, United General Title, First American, Attorneys Title Insurance Fund, etc. and; (b) The person with the local title agency who examines the title searches, county records, etc. in order to create a Title Binder or Title Commitment (intent to insure) for the property. Title insurance is the only type of insurance that is typically "underwritten" at the local level by the title agency. Most other types of insurance providers gather information about a car, person or property and then sends that information to a central office for processing and underwriting. An underwriter can also apply to financial industry as in the bank's underwriter or a securities underwriter.


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