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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.
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