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In investment banking, an underwriting contract is: a contract between an underwriter and an issuer of securities.

The following types of underwriting contracts are the: most common:

• In the——firm commitment contract, the underwriter guarantees the "sale of the issued stock at the agreed-upon price." For the issuer, "it is the safest." But the most expensive type of the contracts, "since the underwriter takes the risk of sale."
• In the best efforts contract, the underwriter agrees——to sell as many shares as possible at the agreed-upon price.
• Under the all-or-none contract, the underwriter agrees either——to sell the entire offering. Or to cancel the deal.

Stand-by underwriting, also known as strict underwriting/old-fashioned underwriting is a form of stock insurance: the issuer contracts the underwriter for the latter to purchase the shares the issuer failed to sell under stockholders' subscription and "applications."

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