FOREIGN UNDERWRITER Meaning and
Definition
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A foreign underwriter refers to an individual or organization involved in the process of underwriting securities or insurance policies issued by a company or institution that is located outside their home country. An underwriter is typically a financial institution or investment bank that assesses the risk associated with a security or insurance product and guarantees the purchase of the agreed upon quantity at an agreed-upon price. The role of the underwriter is to assume the liability and financial risk that could arise from the sale of these securities or insurance policies.
In the context of the term "foreign underwriter," this specific type of underwriter operates in a foreign market or country that is different from their domicile or primary base of operations. They may be involved in offering underwriting services for securities or insurance products issued by foreign companies or entities.
Foreign underwriters play a crucial role in enabling companies from different countries to raise capital or obtain coverage in the global market. Their expertise and knowledge of the local market regulations and practices also help to ensure compliance and effective risk management for both issuers and investors looking to participate in foreign securities offerings or insurance policies.
Overall, a foreign underwriter acts as a bridge between international companies seeking financial support or insurance coverage and global investors who are interested in accessing opportunities in foreign markets.
Common Misspellings for FOREIGN UNDERWRITER
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Etymology of FOREIGN UNDERWRITER
The term "foreign underwriter" combines two key words: "foreign" and "underwriter".
The word "foreign" originated from the Middle English word "forain", which came from the Old French word "forain" meaning "outside" or "external". It ultimately traces back to the Latin word "foras", meaning "outside" or "out of doors". Over time, "foreign" came to refer to things or people from another country or outside one's own place of origin.
The word "underwriter" has its roots in the practice of maritime insurance. In the 17th century, when a ship owner wished to insure their goods for a voyage, they would seek out multiple individuals or entities willing to assume a portion of the risk. These individuals or entities would literally write their names "under" the amount they were willing to underwrite on the insurance document.
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