In investment banking,[1] an underwriting contract[2] is a contract between an underwriter and an issuer of securities.

The following types of underwriting contracts are the most common:

Stand-by underwriting,[3] also known as strict underwriting or old-fashioned underwriting is a form of stock insurance: the issuer contracts the underwriter for the latter to purchase the shares the issuer failed to sell under stockholders' subscription and applications.[4]


  1. ^ "Underwriting". Corporate Finance Institute. Retrieved 2022-11-16.
  2. ^ a b c d "The Investment Banking Handbook" by J. Peter Williamson, 1988, ISBN 0-471-81562-4 , ""Underwriting Contracts", p. 128
  3. ^ "What is Underwriting?". Robinhood. Retrieved 2022-11-16.
  4. ^ "The Law of Securities Regulation" by Thomas Lee Hazen, 1996, ISBN 0-314-08587-4, p. 405.