This is financial advisor Patrick Munro discussing what is a letter of undertaking. In the world of securities management if an individual company or broker is in, retained by a municipality or a state authority or a federal authority for raising money or capital, for a specific initiative ,could be a school, a bridge building, things of that nature. Could be a company offering to just raise general capital. The broker is given a letter by the retaining authority and that letter is called a letter of undertaking.
And on the letter it highlights the issues and the responsibilities that that broker will have. Usually there's a time limit involved there's also a listing of the shares that would be given out by the investing public. And that letter is referred to as a letter of undertaking. It's kept on file with the authorities and it's also filed with the secures and the exchange commission as well. This is called a letter of underwriting. This is financial advisor Patrick Munro.
A letter of undertaking is used by an individual company, or broker, for raising finances for a specific initiative, and will also highlight the issues and responsibilities of the broker. Find out more about letters of undertaking, like how they are kept on file with the authorities and Securities and Exchange Commission, with tips from a registered financial consultant in this free video on finance and investment.
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