tentative order

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Tentative Order

An order that an investor makes to an underwriter before a new issue. Before a new issue, underwriters canvass potential investors, who may or may not book a tentative order to buy a portion. Tentative orders are not final until the new issue actually takes place, because it is illegal to sell a security that has not been issued. Tentative orders help underwriters gauge the level of interest in the new issue. See also: Overbooked, Underbooked, Fully Subscribed.

tentative order

A customer order that is made for part of a new securities issue before all the terms of the issue have been set. Underwriters take tentative orders to determine investor interest in a new issue. This practice assists the underwriters in pricing and sizing the issue.
References in periodicals archive ?
As a result we've got a marketable product with tentative orders from large suppliers.
Trans State Holdings has finalized orders for 50 of the passenger jets, dubbed the Mitsubishi Regional Jet, and placed tentative orders for another 50, according to a press release by Mitsubishi Aircraft.
State-owned Dubai Aerospace Enterprise (DAE), which plans to start an aircraft leasing business, said yesterday it agreed tentative orders with Boeing and Airbus for as many as 200 planes worth about $27.
ANA said it has finalized orders for 15 units of the small passenger jet for 60 billion yen and has placed tentative orders for another 10 units.
On June 4, the public safety commissions issued tentative orders closing the offices.
Weather-delayed orders have started coming in and tentative orders are now firming up.
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