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underwriting Finance Definition
  1. The process of selling stocks or debt offerings to the public. Investment bankers provide underwriting services and in return charge a fee, which is a small percentage amount of the amount of funds raised. Underwriters form a syndicate group comprised of other investment banks in order to jointly share in the underwriting risk and sales effort of distributing a new debt or equity issue.
  2. In the insurance industry, agreeing to undertake a risk in exchange for earning a fee.