Underwriting Discount | Practical Law

Underwriting Discount | Practical Law

Underwriting Discount

Underwriting Discount

Practical Law Glossary Item 3-382-3890 (Approx. 2 pages)

Glossary

Underwriting Discount

Also known as underwriting commission. In an offering, a percentage of the offering price for equity or a percentage of the principal amount of debt that constitutes the compensation paid to the underwriters for marketing and selling the offering.
For more information on the role of underwriters in a registered offering of debt or equity securities, see Practice Note, Underwriting Registered Offerings: Overview.