This document discusses underwriting of shares and debentures. It defines underwriters as individuals, partnerships, or companies that take responsibility for shares and debentures not subscribed to by the public or existing shareholders, and are paid an underwriting commission. Brokers are defined as procuring subscriptions but not taking responsibility for unsold shares/debentures, and are paid a brokerage fee rather than an underwriting commission. The document also addresses calculating underwriter liability and dividing unmarked applications.

1. UNDERWRITING OF
SHARES AND
DEBENTURES

2. C a l c u l a t i o n o f U n d e r w r i t e r s L i a b i l i t y

4. DIVISION OF UNMARKED APPLICATIONS

5. QUESTIONS

6. SOLUTION

7. QUESTION

8. SOLUTION

11. UNDERWRITERS & BROKERS
BASIS UNDERWRITERS BROKERS
MEANING Individuals, partnership firms, joint
stock companies can become
underwriters.
brokers merely procure or try to
procure subscription to shares or deb
Responsibility Take up the responsibility to take up the
shares & deb not subscribed by public
or existing shareholders
Do not take up responsibility to take
up the shares & deb not subscribed
by public or existing shareholders

12. UNDERWRITING COMMISSION & BROKERAGE
UNDERWRITING
COMMISSION
BROKERAGE
Remuneration payable to
underwriters for underwriting
the issue of shares or deb
Amount payable to brokers
who merely procure or try to
procure subscription to shares
or deb