investment underwriting

Investment underwriting is the process where financial institutions, like investment banks, assess and assume the risk of issuing new securities, such as stocks or bonds, to raise capital for a company or government. They evaluate the issuer’s financial health and market conditions to determine the offering’s price and size. In exchange, the underwriters often buy the securities upfront and then sell them to the public or investors, assuming the risk of not selling all the securities at the desired price. This process helps companies access funding while providing investors with vetted investment opportunities.