Western Account
An offering agreement in which each underwriter in a consortium of underwriters is responsible only for selling its alloted amount of the new issue. Once participants have met their previously agreed upon target allotment sale, their liability in the offering is completed. Investopedia Says:
A Western account is also known as a "divided account", as the share of liability is divided among the underwriters by the size of their allotment of the investment vehicle. It is the opposite of an "Eastern account", also known as an "undivided account". Related Terms:
Eating Stock
Initial Public Offering - IPO
Investment Bank - IB
New Issue
Underwriting
Undivided Account |