Negotiated Underwriting
A process in which both the purchase price and the offering price for a new issue are negotiated between the issuer and a single underwriter. Investopedia Says:
The underwriter pays the issuer a purchase price, and the public pays the offering price. The spread between the purchase price and the public offering price represents the proceeds to the underwriter. Related Terms:
Competitive Bid
Initial Public Offering - IPO
Issuer
New Issue
Public Offering Price - POP
Underwriting |