An UNDERWRITING AGREEMENT is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new securities issue. The purpose of the UNDERWRITING AGREEMENT is to ensure that all of the players understand their responsibility in the process, thus minimizing potential conflict.

An UNDERWRITING AGREEMENT is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new securities issue. The purpose of the UNDERWRITING AGREEMENT is to ensure that all of the players understand their responsibility in the process, thus minimizing potential conflict. The UNDERWRITING AGREEMENT is also called an underwriting contract. The arranger and underwriter is typically an investment bank that plans, organises, structures, and markets the securitization transaction together with the ORIGINATOR / SPONSOR.


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