Stocks

Bought-Deal Underwriting

In the world of finance, there exists a type of underwriting known as "firm commitment." In this arrangement, the brokerage firm takes on the role of principal and assumes the risk by using its own capital to purchase all of the securities being issued. This means that if the price of the securities decreases before the firm has a chance to resell them to its clients, the firm is responsible for any losses incurred. It is a high-stakes game that requires careful consideration and expertise.

Related terms

Preferred Shares

Understand the meaning and definition of Preferred Shares in the context of stock market, trading, and investments.

MORE
Split Shares

Understand the meaning and definition of Split Shares in the context of stock market, trading, and investments.

MORE
Non-Operating Expenses

Understand the meaning and definition of Non-Operating Expenses in the context of stock market, trading, and investments.

MORE
Sell Side Analyst

Understand the meaning and definition of Sell Side Analyst in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers