Penalty Bid

0.02 sec.

Penalty Bid

An offer to buy the security offered in an IPO with the guarantee that the buyer will retain the security for a certain period of time. If the buyer sells the security before the time is over, the underwriter offering the security assesses a penalty on the buyer's broker, who may or may not pass the penalty on to the buyer. Usually the penalty is equal to the broker's commission on the trade. Underwriters accept penalty bids during an IPO to prevent the price of the security from declining through a sell-off.

penalty bid

A financial penalty sometimes imposed by the underwriter of a new securities issue against a broker whose customer(s) sold shares of the issue immediately after purchase. Penalty bids are imposed in order to keep the price of a newly issued security from declining.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
No references found			The tension level rose when Godman squandered a penalty bid at the other end - and Pienaar quickly completed his treble. SUICIDE SOUAD; RUGBY SPECIAL... Gutted Murray admits one wrong call ... by Daily Record (Glasgow, Scotland) The tension level rose when Godman squandered a penalty bid at the other end - and Pienaar quickly completed his treble. Rugby Union: YOU BLUE IT BIG TIME; World disaster as Scots chuck ... by Sunday Mail (Glasgow, Scotland) The tension level rose when Godman squandered a penalty bid at the other end - and quickly Pienaar completed his treble. Scotland suffer rugby heartbreak against South Africa by AFP / AFP European Edition			Pays en developpement Payup PBGC PBR PC PCAOB PCBs PCE PCX PE Peace Dividend Peak Pecking-Order View Pecuniary Bequest Peer-to-Peer PEFCO Peg PEG Ratio Pegged Exchange Rate Pegging PEH PEN Penalidad por salida anticipada Penalties penalty Penalty Bid Penalty Clause Penalty Fee Penalty for Underpayment of Estimated Tax Penalty Plan Penalty Tax Pence pencil out Penetration pennant Penni Penny Penny Stock Penny Stock Reform Act Pennying Pension Pension Benefit Guaranty Corporation Pension Cost Pension Fund Pension Liabilities Pension Maximization Pension Parachute Pension Plan Pension Protection Act of 2006 Pension Reversion Pension Rollover			Penalized Quasi-Likelihood Penalized Weighted Least-Square penalizes penalizes penalizing penalizing penally penally Penally Abbey penalties penalties penalties penalties Penalties Committed Penalties for Early Withdrawal of Savings Penalties for getting into a fight? Penalties in minutes Penalties, Disciplinary penalty penalty penalty penalty penalty penalty Penalty (ice hockey) penalty area Penalty area (football) penalty areas Penalty Assessment Funding Committee Penalty Based Simplex Method Penalty Bid Penalty Bids Penalty Bond Penalty Bond Penalty Bond Penalty Bond Penalty Bonds Penalty Bonds Penalty Bonds Penalty Bonds penalty box penalty box penalty box penalty boxes penalty boxes Penalty Charge Notice Penalty clause Penalty clause Penalty clause Penalty Clauses Penalty Clauses Penalty Clauses Penalty corner Penalty corner Penalty corner Penalty corner (field hockey) Penalty corner (field hockey) Penalty Enforcement by Registration of Infringement Notice Penalty Fares Appeal Support Penalty Fee Penalty Fees

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.