An order to purchase part of a new municipal bond issue that is accepted by an underwriting syndicate before an official public offering.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An order by an investor to buy a municipal bond before it is issued and even before all terms, such as the coupon or the maturity, have been set. The SEC disallows presale orders for other securities and, as a result, they are only available for municipal bonds because they are not subject to SEC registration requirements.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An order to buy a portion of a new municipal bond issue before the time at which certain information concerning the issue, such as the coupon, has been determined. Presale orders are permitted with municipal bond issues but not with other security issues because municipal bond issues are exempt from requirements of the SEC.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.