As a copy editor with experience in SEO, I understand the importance of defining complex financial terms like `Agreement among Underwriters`. In this article, I`ll break down the definition of this term and cover its significance in the financial world.

Agreement among Underwriters refers to a legal contract between a group of underwriters or investment banks that agree to purchase the unsold securities in a public offering. This agreement ensures that all the securities are sold, and the issuer of the security would receive the full amount of the offering.

The agreement among underwriters outlines the responsibilities of each underwriter, their liability, and their compensation. This agreement is signed before the securities go on sale, and the underwriters work together to sell all of the securities to the public.

The agreement among underwriters provides several benefits to the issuer of the securities. Firstly, it guarantees the issuer a full sale of all the securities, which reduces their risk and ensures they receive the expected funds. Moreover, it reduces transaction costs associated with the offering by streamlining the sale of securities.

The agreement among underwriters also provides several benefits to the underwriters. It facilitates cooperation amongst the underwriters and reduces the risk involved in purchasing unsold securities. Operating as a syndicate increases the underwriter`s leverage in pricing the securities and enables them to take on larger offerings.

In conclusion, the Agreement among Underwriters is a legal contract between investment banks to purchase unsold securities in a public offering. It streamlines the sale of securities, reduces transaction costs, and provides benefits to both the issuer and underwriters. Understanding the complex financial terminology and its significance is crucial in the world of investments and finance.