Student or Learner
Would anyone please help me with the following in bold?
Buffett invested $4 million in GEICO's devalued stock and persuaded an investment firm, Salomon Brothers, to raise capital for the company by underwriting an additional $75 million in stock.
Is the above saying "guarantee the purchase of additional 75 million dollars' worth of stock?"
Essentially, yes. They are providing the financial support for the loan.
Underwrite also means "Protect by insurance"