bought deal

(redirected from Bought Deals)
Also found in: Wikipedia.

Bought deal

Security issue in which one or two underwriters buy the entire issue. Also known as a guaranteed or fixed-price sale; opposite of a best-efforts sale.

Bought Deal

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.

bought deal

References in periodicals archive ?
Skipper was an equity specialist, performing IPO's, follow-on offerings, block trades, and bought deals.
has increased its bought deal funding by $1 Million USD for total gross proceeds of $2.