Question

write a short note on 'underwriting'?​

Answer 1

Answer:

hey buddy,

yr answer-

Explanation:

Underwriting is one of the most important functions in the financial world wherein an individual or an institution undertakes the risk associated with a venture, an investment, or a loan in lieu of a premium. Underwriters are found in banking, insurance, and stock markets.  

The nomenclature ‘underwriting’ came about from the practice of having risk takers to write their name below the total risk that s/he undertakes in return for a specified premium in the early stages of the industrial revolution

Answer 2

Underwriting

It is a process through which the institution or individual can takes the financial risks for fee. It normally takes place in insurance , investment ,shares

In companies act 2013

Underwriter are allowed for commission upto 2.5% for shares and 5% for debenture