selling group
(redirected from Selling Groups)Selling group
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Selling Group
In an initial public offering or bond issue, a group of institutions who help the issuer place a new issue without necessarily participating in the underwriting group. This means they are not responsible for any unsold securities. The selling group therefore receives lower fees than the underwriters and is listed last on the tombstone. The specific agreement governing a selling group's duties in a new issue is called a selected dealer agreement.
More generally, a selling group may refer to all underwriters in a new issue, that is, every person and institution on the tombstone.
More generally, a selling group may refer to all underwriters in a new issue, that is, every person and institution on the tombstone.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
selling group
A group of investment bankers that assists a syndicate or an underwriter in the sale of a new security issue but is not responsible for any unsold securities. Because members of a selling group do not assume the risk of syndicate members, their fees are correspondingly lower than the fees of the syndicate members. See also selected dealer agreement.
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.