- Advantages of Share underwriting Contract:
1. After having entered into under writing contract, there is no uncertainty among the promoters of the company to collect capital.
2. The underwriter Brokers, being experts of Share market give appropriate advice to the company and hence there is no risk for the investors.
3. Before taking liability, the Underwriter Brokers make necessary investigation about the condition and future of the company and thereafter enter into Under writer Contract. Therefore, the investors are confident about the safety of their money.
4. The company also gets advantage of goodwill of underwriter Brokers. Because of the names of reputed underwriter Brokers the investors are attracted to invest in the company.