bought deal(redirected from Bought Deals)
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A new issue that a single underwriter purchases in order to place with investors. Most of the time, new issues are made through a syndicate of several underwriters. Likewise, most underwriters are reluctant to buy part of a new issue if they are unsure of how much demand there will be. Thus, an underwriter only agrees to a bought deal if it believes there will be a good deal of demand so that it can quickly re-sell the entire issue.
See firm commitment.