Circle

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Related to circling: circling approach, Circling Back

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 classic literature ?
The air seems full of specks, floating and circling in the draught from the window, and the lights burn blue and dim.
Now gallants tap their two-edged swords, And pride and passion swell amain; Like red stars flashing through the night The circling wine-cups brim again.
The lofty range of the Three Tetons, those great landmarks of the Rocky Mountains rising in the east and circling away to the north and west of the great plain of Snake River, and the mountains of Salt River and Portneuf toward the south, catch the earliest falls of snow.
Looking down the vista, of memory, I see the evenings passed in that little parlour like a long string of rubies circling the dusk brow of the past.