severally but not jointly

Severally but not jointly

An agreement between members of an underwriting group buy a new issue (severally), but not to assume joint liability for shares left unsold by other members.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Severally But Not Jointly

Describing an underwriting agreement in which several underwriting firms agree to buy a new issue together, but state specifically that they are not responsible for any other firm's unsold portion of the issue. That is, while the underwriting syndicate works together in coordinating the placement of the new issue with investors, each firm is ultimately only responsible for its own portion. See also: Jointly and severally.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

severally but not jointly

Of or relating to a security offering in which individual underwriters are responsible for selling their initial allocations but are not responsible for any unsold securities allocated to other underwriters. Compare jointly and severally.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.