whats d difference b/w broker and underwriter.......?
1 Replies
CA D. Singhal
(CA )
(490 Points)
Replied 30 March 2011
There is a vast difference between a Broker & Underwriter-
1. Underwriter has major role in case of INITIAL PUBLIC OFFER [IPO] and FURTHER PUBLIC OFFER [FPO], where such underwriters help to attain minimum possible or specific share subscripttion.
On the other hand, Broker is the person who executes customer offers on behalf of any stock exchange etc.
2. Underwriter gets commission on shares underwritten, while broker gets commission on transactions done
3. Ex. Reliance power may have UNDERWRITERS for its IPO
BSE has its affiliate BROKERS
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