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Write downReducing the book value of an asset if its is overstated compared to current market values.Write down Similar MatchesOption writerOption writerThe initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised. UnderwriterUnderwriterA financial institution which, in return for a fee or commission, agrees to purchase unsold shares in a new issue, if the issue is not fully subscribed.From the company's point of view, having its new issue underwritten is a form of insurance. It means that if it has priced an issue too high and the market shuns it, the company can still be sure that it will get money from the new issue.Of course, security comes at a price. Underwriters charge a fee for the back-up they provide. If the new issue is very popular, it will pocket that fee and make a handsome profit. Occasionally, they get badly burned. New issues underwritten immediately before the 1987 stock market crash lost a lot of money.Sometimes companies do a rights issue at a deep discount to reduce the underwriting fees. Underwriters discountUnderwriters discountSee: Gross spread Option writerOption writerSee: Option seller Buy and write strategyBuy and write strategyAn options strategy that calls for the purchase of stocks and the writing of covered call options on them. Further SuggestionsVariable Ratio WriteUnderwriter Covered Straddle Write Lead underwriter Write off Managing underwriter Naked writer Underwrite Ratio writer Write writer ration write Covered writer Buy write |
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