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Underwriting - Definition
Below, you'll find a definition of this investing term...

Definition: The process by which investment bankers raise capital for their clients (corporations looking to "go public").

TeenAnalyst Advice: When a company wants to sell stock to the public for the first time, they have to find investors to buy it.  The investment bankers step in and do this.  They price the stock and match it with interested investors.  In exchange, they take a fee of usually 5-10%.

 

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