Reallowance

Reallowance

A fee that an underwriting syndicate pays to a company that helps place a new issue with investors, but is not part of the syndicate.
References in periodicals archive ?
5% extra in commissions on those product sales, which is called "marketing reallowance.
12 (noting also that "[underwriters typically provide in underwriting agreements that the only statements attributable to them concern their name and address and the amount of the concession or reallowance in a public equity offering").
Gross underwriter spread (hereafter referred to as underwriter spread) includes a management fee, underwriting fee, selling concession, and reallowance fee.
Examples include the institution and repeal of investment tax credits; the allowance, disallowance, and reallowance of the deductibility of traditional IRA contributions for a working spouse whose spouse is in a pension plan; and the comings and goings of capital gains rates.
Peltier receives a percentage of the broker reallowance, which varies based on the amount his client invests.