underwriting
Underwriting is the act of assuming a risk by insuring it, such as insuring life or property , or by agreeing to buy all or part of a new issuance of securities to be offered for public offering . It involves a financial institution (like a bank , insurance company , or investment firm) assessing , evaluating, and assuming the risk associated with a financial transaction, such as a loan , insurance policy , or securities issuance.
See also underwriter ; insurance
[Last reviewed in July of 2024 by the Wex Definitions Team ]
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