Securities underwriting refers to the behavior that an issuer entrusts a securities operation institution to sell securities to the public. When an issuer publicly issues securities to an unspecified object, it shall be underwritten by a securities company according to law. Securities underwriting business adopts the mode of consignment or underwriting.
1. Securities consignment, also known as agency issuance, refers to the underwriting method in which a securities company sells securities on behalf of the issuer and returns all unsold securities to the issuer at the end of the underwriting period.
2. Securities underwriting refers to the underwriting method in which a securities company purchases all the securities of the issuer according to the agreement or purchases all the remaining securities after selling by itself at the end of the underwriting period. Underwriting can be divided into full underwriting and differential underwriting.