Whether we are referring to the insurance industry, loans/lending, Initial Public Offerings (IPOs) or a wide range of other sectors, there is a clear role for underwriting in the let's call it financial ecosystem.


As explained in this video, underwriting essentially revolves around wellfunded entities putting their capital on the line in exchange for being rewarded for the risk they take on.


From definition or if you will meaning to examples, I've explained in an easy to follow manner what underwriting is all about and why you should care.


While some people consider "underwriting" just another obscure financial mumbojumbo term and shrug it off, others understand that it represents yet another piece of the puzzle that ultimately help them meaningfully understand the financial industry.


Maybe you've never heard about underwriting or perhaps you've come across the term but never really cared enough to dig deeper. No matter what situation you find yourself in, this one minute explanation will hopefully be of assistance :)