An underwriter for a company's share is paid

An underwriter for a company's share is paid a commission. When a company issues shares to the public, it often hires an underwriter to purchase all or a portion of those shares. The underwriter then resells the shares to the public for a higher price to earn a profit. In exchange for this service, the underwriter is paid a commission, which is a percentage of the total value of the shares they purchase. The commission serves as compensation for the underwriter's risk and effort in purchasing and reselling the shares.