Circle

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Related to circled the wagons: circle the waggons

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 ?
On the other hand, conservatives circled the wagons around Rick Santorum after his bigoted comments about homosexuality.
Rumsfeld declined to take my advice as Religious Right leaders circled the wagons around Boykin's "free speech" rights as if they were suddenly the world's greatest civil libertarians.
Washington revenue estimators who project rising deficits in response to tax cuts have circled the wagons in order to form a Flat Earth Society intended to persuade the public that the planet is not curved.
Yet rather than accept his findings, groups like the Council for Responsible Nutrition (a dietary-supplement industry trade association) circled the wagons and denounced the study--along with Shelton's recommendation to discontinue the use of St.