Underwrite

Underwrite
To guarantee, as to guarantee the issuer of securities a specified price by entering into a purchase and sale agreement. To bring securities to market. The New York Times Financial Glossary

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underwrite un‧der‧write [ˌʌndəˈraɪt] verb underwrote PASTTENSE [-ˈrəʊt ǁ -ˈroʊt] underwritten PASTPART [-ˈrɪtn] [transitive]
1. FINANCE if a financial institution underwrites a share issue, it arranges to sell shares to investors and agrees to buy any shares that are not bought by them:

• An underwritten offer may be the only way a company can raise money.

2. INSURANCE if an insurance company underwrites an insurance contract, it agrees to pay for any loss covered by the contract
3. FINANCE to agree to pay the cost of something and to take financial responsibility for it if it fails:

• A local company has underwritten some of the development costs.

• The government has agreed to underwrite the project with a grant of £5 million.

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underwrite UK US /ˌʌndəˈraɪt/ verb [T] (underwrote, underwritten)
► FINANCE to give an activity financial support and take responsibility for paying any costs if it fails: »

He underwrote a friend's development company in New York.

 »

Many businesses have underwritten the event.

► INSURANCE if a company underwrites an insurance policy or someone's property, it agrees to pay out money in cases of damage, loss, etc.: »

Why should insurance companies underwrite policies for people moving into areas that have a high probability of wildfires?

► STOCK MARKET if a financial organization underwrites new shares when they are offered for sale, it agrees to buy any shares that are not sold: »

The firm underwrote $12 billion of securities last year.

 »

The rights issue is fully underwritten.


Financial and business terms. 2012.

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Synonyms:
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Look at other dictionaries:

  • underwrite — un·der·write / ən dər ˌrīt, ˌən dər rīt/ vt wrote / ˌrōt, rōt/, writ·ten, / ˌrit ən, rit ən/, writ·ing 1 a: to assume liability for (a risk) as an insurer the insurer underwrite s individuals, not the group, in franchise health insurance …   Law dictionary

  • Underwrite — Un der*write , v. t. [imp. {Underwrote}, Obs. {Underwrit}; p. p. {Underwritten}, Obs. {Underwrit}; p. pr. & vb. n. {Underwriting}.] 1. To write under something else; to subscribe. [1913 Webster] What addition and change I have made I have here… …   The Collaborative International Dictionary of English

  • underwrite — [un′dər rīt′] vt. underwrote, underwritten, underwriting [ME underwriten, orig. used as transl. of L subscribere: see SUBSCRIBE] 1. Archaic to write under something, esp. under something written; subscribe 2. to agree to buy (an issue of stocks,… …   English World dictionary

  • Underwrite — Un der*write , v. i. To practice the business of insuring; to take a risk of insurance on a vessel or the like. [1913 Webster] …   The Collaborative International Dictionary of English

  • underwrite — early 15c., from UNDER (Cf. under) + WRITE (Cf. write) (v.). A loan translation of L. subscribere (see SUBSCRIBE (Cf. subscribe)). Used literally at first; modern sense of to accept the risk of insurance (1620s) is from notion of signing a marine …   Etymology dictionary

  • underwrite — [v] endorse, insure accede, agree to, angel*, approve, back, bankroll*, collateral, consent, countersign, endow, finance, float, fund, guarantee, help, initial, okay*, pay, provide, provide financing, sanction, seal, secure, sign, sponsor, stake …   New thesaurus

  • underwrite — ► VERB (past underwrote; past part. underwritten) 1) sign and accept liability under (an insurance policy). 2) undertake to finance or otherwise support or guarantee. DERIVATIVES underwriter noun …   English terms dictionary

  • underwrite — To guarantee, as to guarantee the issuer of securities a specified price by entering into a purchase and sale agreement . To bring securities to market. Bloomberg Financial Dictionary * * * underwrite un‧der‧write [ˌʌndəˈraɪt] verb underwrote… …   Financial and business terms

  • underwrite — UK [ˌʌndəˈraɪt] / US [ˌʌndərˈraɪt] verb [transitive] Word forms underwrite : present tense I/you/we/they underwrite he/she/it underwrites present participle underwriting past tense underwrote UK [ˌʌndəˈrəʊt] / US [ˌʌndərˈroʊt] past participle… …   English dictionary

  • underwrite — /ˌʌndə raɪt/ verb 1. to accept responsibility for something ♦ to underwrite a share issue to guarantee that a share issue will be sold by agreeing to buy all shares which are not subscribed ● The issue was underwritten by three underwriting… …   Dictionary of banking and finance

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