Circle

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Circle

Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price.

Circle

Informal; to attempt to find investors for underwriting purposes. Before a new issue, underwriters circle potential investors, who may or may not book an order to buy a portion. Potential investors are provided with a preliminary prospectus if they are circled and indicate interest. It is important to note that circling is non-binding because it is illegal to sell a security that has not been issued. See also: Overbooked, Underbooked, Fully Subscribed, Indication of Interest.

circle

A process used in finding interested buyers of a new security issue before determining the final price. A potential customer will be given a preliminary price (for example, the interest rate for a bond or the selling price for a stock) and will commit to a purchase if the issue is actually priced at the preliminary estimate. A different price permits the customer to back out or to get the first chance to buy the issue at the new price. Compare indication of interest.
References in periodicals archive ?
Patients were maintained with sevoflurane 2 to 3% in nitrous oxide and 50% oxygen at a fresh gas flow rate of 4 l/min using a circle system.
Apparently the anaesthetic nurse did not reconnect the circle system after removing a T-piece from the common gas outlet.
This acquisition is consistent with our strategy of adding external growth to our core services by acquiring well managed, profitable businesses that integrate smoothly into the Circle system.
They are Van Berge Henegouwen (VBH), serving the European region; Great Circle Systems (GCS), serving the U.