Simple English definitions for legal terms
Read a random definition: adoptability
Underwrite: When someone agrees to invest money in something, like a loan, insurance, or securities, they are taking a risk. They hope to make a profit, but they could also lose money. For example, when you borrow money, the person lending it to you is underwriting the risk that you might not pay it back. When you buy insurance, the company is underwriting the risk that something bad might happen to you. And when you invest in stocks or bonds, you are underwriting the risk that their value might go down instead of up.
Definition: Underwrite means taking on financial risk in the hope of making a profit. It can refer to different types of financial investments, such as loans, insurance, and securities.
Examples:
These examples illustrate how underwriting involves taking on financial risk in the hope of making a profit. In each case, the investor or lender is willing to risk losing money in exchange for the possibility of earning a return on their investment.