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Home > QFINANCE Dictionary > Definition of underwriting fee

Definition of

underwriting fee

Stockholding & Investments

fee guaranteeing purchase of new stock a fee paid by a company to the underwriters for guaranteeing the purchase of new shares in that company.

Related definitions of "underwriting fee"

Recommended Further Reading (Term count)
  • Financial Steps in an IPO for a Small or Medium-Size Enterprise
    by Hung-Gay Fung
    An initial public offering (IPO) of stocks is a share offering to the public by a small or medium-sized enterprise (SME) undertaken to raise additional cash for future growth or to enable existing stockholders to cash out by selling part of their holdings. Among other things, a successful IPO will provide a company with an objective valuation of its stock, create a good public image of the company—thus lowering its cost of borrowing—and provide...
  • The Cost of Going Public: Why IPOs Are Typically Underpriced
    by Lena Booth
    When firms go public, they incur direct and indirect costs associated with the initial public offering (IPO) process. Direct costs are fairly predictable—they include registration, underwriting, and attorney and auditing fees. The indirect cost, commonly known as IPO underpricing, is one of the most perplexing puzzles in finance. It is observed in almost every financial market in the world and across all procedures of share allocation. IPOs are,...

Definitions of ’underwriting fee’ and meaning of ’underwriting fee’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’underwriting fee’ and other financial terms with our online QFINANCE Financial Dictionary.

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