Reallowance

Reallowance

A fee that an underwriting syndicate pays to a company that helps place a new issue with investors, but is not part of the syndicate.
References in periodicals archive ?
On REITs and alternative investments, BDs earn between 1% and 1.5% extra in commissions on those product sales, which is called "marketing reallowance." You may have noticed the increasingly large REIT and alts presence at BD conferences over the last five years--it's simply because these vendors are currently willing to spend more to get in front of reps.
See, e.g., Farris, supra note 48, n.12 (noting also that "[underwriters typically provide in underwriting agreements that the only statements attributable to them concern their name and address and the amount of the concession or reallowance in a public equity offering").
Gross underwriter spread (hereafter referred to as underwriter spread) includes a management fee, underwriting fee, selling concession, and reallowance fee.
Examples include the institution and repeal of investment tax credits; the allowance, disallowance, and reallowance of the deductibility of traditional IRA contributions for a working spouse whose spouse is in a pension plan; and the comings and goings of capital gains rates.