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
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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.