The action of a person selling shares which he does not own at the time of selling. STAG One who applies for a new security with the intention of selling it at the first available opportunity. An organisation providing the market-place or facility for the buying and selling of stocks and shares. A security which meets the requirements of legislation relating to the use of funds by trustees. If public subscriptions fail to reach the minimum level, the underwriter takes up the shortfall.
Underwriters often have sub-underwriters to share the risk.
Unlike a debenture, it is not secured by a charge over the issuing company's assets. Unsecured note holders rank ahead of shareholders in the event of the company's liquidation. Are restricted in respect to transfer. The voluntary or compulsory liquidation of a company. 1999-2000 Kuala Lumpur Stock Exchange.