underwrite
v.
give one's signature and thus receive liability; financially sponsor, support through donations; guarantee the sale of shares (Finance); provide insurance; write underneath or at the end of (a document)
Underwriting
Underwriting refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the process of providing access to their product like providing equity capital, insurance or credit to a customer. The name derives from the
Lloyd's of London insurance market in
London,
United Kingdom. Financial bankers, who would accept some of the risk on a given venture (historically a
sea voyage with associated risks of shipwreck) in exchange for a
premium, would literally write their names under the risk information which was written on a Lloyd's slip created for this purpose.
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underwrite
Verb
1. guarantee financial support of; "The opera tour was subvented by a bank"
(synonym) subvention, subvent
(hypernym) undertake, guarantee
2. protect by insurance; "The insurance won't cover this"
(synonym) cover, insure
(hypernym) guarantee, warrant
(hyponym) reinsure
(verb-group) cover
(derivation) insurance broker, insurance agent, general agent, underwriter
Underwriting
(p. pr. & vb. n.)
of Underwrite
(n.)
The business of an underwriter,
Webster's Revised Unabridged Dictionary (1913), edited by Noah Porter.
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Underwriting