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UNDERWRITING IS OPTIONAL

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TYPES OF UNDERWRITING

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1. Full underwriting

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 2. Partial underwriting

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 3. Firm underwriting

Ad

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 Advantages: : The main advantage of 

underwriting is that the underwriters give a guarantee that

 the shares offered to the public will be subscribe for in full.Thus in case of poor public response, the underwriters will take up the balance of shares not subscribed for the publicand pay for them.

: Underwriting of shareboost up the confidence of the investors. They generally feel that the underwriters underwrite the shares of only goodcompanies.

: In addition to underwriting of shares, the company also gets the expert financial advise of 

underwriters as to where, when and how the shares are to besold.

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 Provisions regarding the payment of underwriting commission.

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   Presented by:Varsha. Daryana

 Roll No.- 27