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book building

   Also found in: Wikipedia 0.03 sec.
Book Building
The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.

Notes:
An underwriter "builds a book" by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay.


book building
Solicitation of tentative interest from likely institutional and individual investors by the investment banking syndicate of a new security issue before the offering has been approved by the Securities and Exchange Commission.

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