finance
underwriting
The process by which an individual or institution takes on financial risk for a fee, typically in insurance or securities issuance.
Example
"The investment bank was hired to underwrite the company's IPO."
💡 Memory Tip
UNDER-writing — you literally write your name UNDER the risk. You're accepting liability for it.
Etymology
From the practice of writing one's name under a risk — literally signing under the risk you accept.
Common Misspellings
underwrittingunderwritngunderritingunderwrting
Related Terms
See Also
insurance