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Simple English definitions for legal terms

underwriting spread

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A quick definition of underwriting spread:

Underwriting spread: The difference between the price that a company gets for selling its stocks or bonds to an underwriter and the price that the public pays for those same stocks or bonds. The underwriting spread is made up of different fees that the underwriter charges for its services. This spread compensates the underwriter for taking on the risk of buying the securities from the company and selling them to the public.

A more thorough explanation:

An underwriting spread is the difference between the price that an underwriter pays to the issuer of a security and the price paid by the public in the initial offering. This spread compensates the underwriter for its services and is made up of the manager's fee, the underwriter's discount, and the selling-group concession or discount.

  • When a company wants to issue stocks or bonds, they may hire an investment bank to underwrite the offering. The investment bank will buy the securities from the company at a discounted price and then sell them to the public at a higher price. The difference between the discounted price and the public offering price is the underwriting spread.
  • For example, if a company wants to issue $100 million in bonds and the investment bank agrees to underwrite the offering at a discount of 2%, the investment bank will buy the bonds from the company for $98 million. The investment bank will then sell the bonds to the public for $100 million, making a profit of $2 million, which is the underwriting spread.

These examples illustrate how the underwriting spread works in investment banking. The underwriter takes on the risk of buying the securities from the issuer and then selling them to the public. The underwriting spread compensates the underwriter for this risk and for the services provided in bringing the securities to market.

underwriting agreement | undesirable discharge

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Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
Dkk
9:49
Lmfao, Gross
Dkk
9:49
@glovediedthisishismom: Watch it at the office!
Dkk
9:50
Proton vpn and https://en.solarmovie-official.lol/
let little glovey go home!
babycat
9:55
it’s true he sent me feet pics (unsolicited!)
babycat
9:56
poor little glovey
babycat
9:56
it’s illegal to make you work on a snow day
BulbasaurNoLikeCardio
9:57
Free feet pics sounds like you saved some money
snow
9:59
wish it was snowing in texas rn
Dkk
9:59
Man, hate this conversation cus it just reminds me of the gay guy that used to always ask me for them.
BulbasaurNoLikeCardio
9:59
That cold snap that hit texas is heaven though, opening windows in the house and using the fireplace
snow
10:00
it really is bulb. it was hot as hell for the longest time
BulbasaurNoLikeCardio
10:00
@Dkk: You could of made so much money
that sounds heavenly
babycat
10:00
Aw Dkk has trauma from the gay guy who wanted to fuck his arches
snow
10:00
lmaooooo
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