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Manpreet Kaur, Lovely Professional University Unit 10: Underwriting of Shares
Unit 10: Underwriting of Shares Notes
CONTENTS
Objectives
Introduction
10.1 Meaning of Underwriting
10.2 Underwriting Commission
10.3 Types of Underwriting
10.4 Advantages and Objectives of Underwriting
10.5 Requirement of Disclosure of Underwriting Agreement
10.6 Rates of Underwriting Commission, Brokerage and Remuneration to Managers
10.6.1 Marked and Unmarked Applications
10.6.2 Determination of the Liabilities of the Underwriters
10.7 Accounting Treatment
10.7.1 Partial Underwriting Agreement
10.7.2 When Partial Issue is underwritten by More than One Underwriter
10.7.3 Firm Underwriting Agreements
10.8 Accounts of Underwriter
10.9 Sub-Underwriting
10.10 Overall or Overriding Commission
10.10.1 Accounting Treatment
10.10.2 Miscellaneous Illustrations
10.11 Summary
10.12 Keywords
10.13 Review Questions
10.14 Further Readings
Objectives
After studying this unit, you should be able to:
Explain the meaning of underwriting
Understand the concept of underwriting commission
Describe types, advantages and objectives of underwriting
Identify various underwriting agreements to be disclosed
Define determinants of the liabilities of underwriting
LOVELY PROFESSIONAL UNIVERSITY 221
