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Retention |
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Retention The number of units allocated to an underwriting syndicate member less the units held back by the syndicate manager for facilitating institutional sales and for allocation to nonmember firms. In the context of construction contracts, an amount retained from construction contract payments (5-15% of the contract price) to ensure the contractor completes the construction before the retention is returned. Retention Prior to a new issue, the percentage of securities given to an underwriting syndicate to place with investors after making allowances for any underwriters that are not part of the syndicate as well as placement with institutional investors.
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