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Underwritten Offering |
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Underwritten offering Purchase and Sale A method of underwriting in which an underwriter buys an issue for his/her own account and then attempts to sell the issue to other investors. If the underwriter is unsuccessful in placing the issue, he/she keeps what remains. It contrasts with various other forms of underwriting, notably best-efforts sale, in which the underwriter returns the remaining issue to the issuer. The Bank of Canada uses a form of the purchase and sale method, known as a Purchase and Resale Agreement, when selling its treasury securities. It is also called an underwritten offering. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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