From the practice of securities underwriting, there are four main ways of securities underwriting: consignment, sales assistance, underwriting and underwriting by underwriting syndicate.
(1) Securities entrustment
The so-called securities consignment refers to the underwriting method in which the underwriter sells the securities on behalf of the issuer and returns all the unsold securities to the issuer after the sales period ends.
(2) Securities sales assistance
The so-called securities promotion means that the underwriter buys the remaining securities (underwriting balance) after the agreed underwriting period according to the underwriting contract, or lends them to the issuer according to the remaining amount, so as to ensure the smooth implementation of the issuer's fund-raising and capital utilization plan. China's securities law classifies balance underwriting as underwriting.
(3) Securities underwriting
The so-called securities underwriting means that the underwriter buys all or part of the securities issued by the plan with its own funds, and then sells them to the public, and the unsold part is still held by the underwriter at the expiration of the underwriting period.
(4) Underwriting by an underwriting syndicate.