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Describes limited interest by prospective buyers in a new issue of a security during the preoffering registration period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Describing a situation in which investors show a lack of interest in a new issue of a security. Before a new issue, underwriters canvass potential investors, who may or may not book an order to buy a portion of the new issue. If investors do not show interest, the security is said to be underbooked. This may affect the price when the security is actually issued. See also: Fully circled.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Of, relating to, or being a new security issue in which investment bankers find a general lack of interest among investors before the issue date.
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.