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gross spread

   Also found in: Wikipedia 0.01 sec.
Gross Spread
The difference between the underwriting price received by the issuing company and the actual price offered to the public.

Notes:
By charging the public a higher price for an IPO than the price paid to the issuing company, the underwriters are able to make a profit. For example a company might get $15 per share for their IPO, but the underwriters sell the stock to the public at $17--profiting $2 per share.


Gross spread
The fraction of the gross proceeds of an underwritten securities offering that is paid as compensation to the underwriters of the offering.

gross spread
The difference in the price that an investor pays for a new security issue and the price paid the issuer by the lead underwriter. The gross spread is a function of a number of variables including the size of the issue and the riskiness, or price volatility, of the security. Also called underwriting spread.

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The gross spread - the difference between the price given to the seller and the price at which the shares were sold - was $1.
The indicative gross spread for natural gas processing activities on the Gulf Coast averaged $0.
The latest term securitization agreement placed $80 million of automobile receivables-backed securities at a gross spread of over 13%, and the Company announced extension of its $100 million prime credit facility agreement through January 1, 2002.
 
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