selling group

(redirected from Selling Groups)

Selling group

All banks involved in selling or marketing a new issue of stock or bonds.

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.

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.
References in periodicals archive ?
25, were made available to investors through Barclays and four selling groups with access to credit unions provided through ISI.
Carey, where she managed relationships with the broker-dealers that were part of the CPA REIT selling groups.
Thus, certain selling groups may escape the grasp of the loss disallowance rule.