agreement between the managing underwriter, acting as agent for the underwriting group, and the securities issuer. The agreement sets forth the responsibilities of all parties to the proposed sale and the initial price of securities offered to the public, and specifies whether the underwriter will buy any or all of the unsold securities. The issuer pays the cost of filing registration papers with the Securities And Exchange Commission, and the securities prospectus detailing terms of the public offering. Contrast with agreement among underwriters.
agreement between a corporation issuing new securities to be offered to the public and the managing underwriter as agent for the underwriting group. Also termed the purchase agreement or purchase contract, it represents the underwriters' commitment to purchase the securities, and it details the public offering price, the underwriting spread (including all discounts and commissions), the net proceeds to the issuer, and the settlement date.
The underwriting agreement is not to be confused with the agreement among underwriters.
