What are the Methods of Underwriting
An underwriting agreement may take any of the below three forms:
(i) Standing behind the issue: Under this method, underwriter guarantees the sale of a specified number of shares within a specified period. If public don't subscribe to the specified amount of issue, the underwriter buys the balance in issue.
(ii) Consortium Method: Underwriter is jointly done by a group of underwriters in this method. This method is adopted for large issue.