Circle


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Circle

Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price.

Circle

Informal; to attempt to find investors for underwriting purposes. Before a new issue, underwriters circle potential investors, who may or may not book an order to buy a portion. Potential investors are provided with a preliminary prospectus if they are circled and indicate interest. It is important to note that circling is non-binding because it is illegal to sell a security that has not been issued. See also: Overbooked, Underbooked, Fully Subscribed, Indication of Interest.

circle

A process used in finding interested buyers of a new security issue before determining the final price. A potential customer will be given a preliminary price (for example, the interest rate for a bond or the selling price for a stock) and will commit to a purchase if the issue is actually priced at the preliminary estimate. A different price permits the customer to back out or to get the first chance to buy the issue at the new price. Compare indication of interest.
References in classic literature ?
Then starting and blushing, she looked quickly round the circle, as if they had caught a glimpse into her bosom.
Out of this precinct they go for nothing; are of no use in the farm, in the forest, in the market, in war, in the nuptial society, in the literary or scientific circle, at sea, in friendship, in the heaven of thought or virtue.
Again and again the Arabs charged, at last forming a stationary circle about the little fortress, and outside the effective range of the defenders' arrows.
Then, wishing to secure a brilliant position in high society, he learnt to dance excellently and very soon was invited to all the balls in the best circles, and to some of their evening gatherings.
We made a circle through the forest to make sure, and then we ran to the fire.
And for twelve years Elam Harnish had continued to grope for gold among the shadows of the Circle.
The circle of boys broke to let him through as he raced for'ard along the starboard side to the tight-lashed heap of trade-boxes.
Taking the sled as the centre of the circle that One Ear was making, Bill planned to tap that circle at a point in advance of the pursuit.
Copernicus is comprised in the series of ringed mountains of the first order, in the division of great circles.
The life of man is a self-evolving circle, which, from a ring imperceptibly small, rushes on all sides outwards to new and larger circles, and that without end.
If I am taking cognisance of what is offered me by my senses I do so but to bring the results within the circle of my reason.
Billee, terrified into bravery, sprang through the savage circle and fled away over the ice.