Series 52: 3.1.1.3. Underwriter

3.1.1.3. Underwriter

Recall from the SIE that an underwriter is a firm (typically an investment bank) that manages the issuance of new securities on behalf of the issuer. The underwriter helps price, market, and sell the new securities. Typically, the underwriter buys the securities from the issuer and sells them to investors. The difference between the price it pays the issuer and the price it charges investors is how the underwriter is compensated. Often an underwriter will seek the assistance of other underwriters in c