underwriter
/ˈʌndərˌraɪtər/
Definition
A financial institution, such as an investment bank, that manages the sale of new securities like stocks or bonds during an initial public offering (IPO) and assumes the risk of buying the shares to resell them to the public.
Etymology
The term originated in the 17th century from the practice of individuals signing their names under the total amount of risk they were willing to accept for a shipping venture. This literal act of writing one's name underneath a document evolved into the modern sense of financial risk-taking and insurance.
In the news
In the article, the term refers to the firms that manage IPOs for companies like SpaceX. Byron Rooney is highlighted for his role in representing these financial institutions during major market listings.
Latham Poaches Davis Polk Capital Markets Pair, SpaceX IPO Lead
Read the full article ↗Bloomberg Law News