Underwriting
One meaning of underwriting is the process of risk assessment, which insurance companies carry out to determine how likely it is that a particular event or accident will happen. After underwriting, the insurance company will be able to put a price on the insurance against that event or accident. All insurance companies do this in one way or another, whether it’s for life insurance, boat insurance, or anything else that comes to mind.
The other meaning of underwriting is used when a company floats on the stock market. If a financial institution is said to be underwriting a company that is about to float, this means that if some shares are not taken up by investors then the financial institution will buy them.
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