Temporary association of investment bankers, organized by the originating investment banker in a new issue of securities. Operating under an Agreement Among Underwriters, it agrees to purchase securities from the issuing corporation at an agreed-upon price and to resell them at a public offering price, the difference representing the underwriting spread. The purpose of the underwriting group is to spread the risk and assure successful distribution of the offering. Most underwriting groups operate under a divided syndicate contract, meaning that the liability of members is limited to their individual participations. Also called distributing syndicate, purchase group, investment banking group, or syndicate.