Pre-Syndicate Bid

pre-syndicate bid

A stabilization bid prior to the effective date of a secondary offering.

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Pre-Syndicate Bid

An order by a managing underwriter to buy or sell a security immediately before a secondary offering of the same security. The managing underwriter makes a pre-syndicate bid in order to stabilize the price of the security, which will make the secondary offering easier to place with investors. Pre-syndicate bids are only permissible under certain, defined circumstances set forth in SEC Rule 10b-7.