Eating stock(redirected from Eat Stock)
When an underwriter can't find buyers for a stock and therefore has to buy them for his own account.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act of buying stock one is legally required to buy, especially when doing so is disadvantageous. For example, an underwriter may eat stock when it is required to buy stock it was unable to place with investors. Likewise, an investor with a short position on a put may be forced to buy stock at a price over its market value.
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