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Tentative Order

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Tentative Order
An order that an investor makes to an underwriter before a new issue. Before a new issue, underwriters canvass potential investors, who may or may not book a tentative order to buy a portion. Tentative orders are not final until the new issue actually takes place, because it is illegal to sell a security that has not been issued. Tentative orders help underwriters gauge the level of interest in the new issue. See also: Overbooked, Underbooked, Fully Subscribed.

tentative order
A customer order that is made for part of a new securities issue before all the terms of the issue have been set. Underwriters take tentative orders to determine investor interest in a new issue. This practice assists the underwriters in pricing and sizing the issue.


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State-owned Dubai Aerospace Enterprise (DAE), which plans to start an aircraft leasing business, said yesterday it agreed tentative orders with Boeing and Airbus for as many as 200 planes worth about $27.
ANA said it has finalized orders for 15 units of the small passenger jet for 60 billion yen and has placed tentative orders for another 10 units.
Among recent deals was a tentative order from Singapore Airlines for 20 Airbus A350 planes and nine Airbus A380 superjumbos and one from German budget airline Blue Wings for 20 from the single-aisle A320 series.
 
 
 
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