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Underwriter
A person or organization that evaluates and assumes the risk of another entity, often involved in issuing new securities as part of public offerings.
Securities
Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options.
Floatation Costs
The expenses incurred by a company when issuing new securities, including underwriting fees, legal fees, and registration fees.
Firm Commitment
A type of underwriting where an underwriter agrees to buy all the unsold shares in an offering and sell them to the public.
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