Underwriter's discount

Underwriter's discount

Gross Spread

In a public offering, the difference between the price an underwriter pays an issuer and the price at which it sells the offering to the public. That is, an underwriter pays the issuer an agreed-upon price to purchase an issue, which it then attempts to place with investors. When it places the issue, it charges the investor a certain price like any other trade. The difference is known as the gross spread; it forms the bulk of an underwriting firm's profits. See also: Fully subscribed, Overbooked, Underbooked.
References in periodicals archive ?
In addition, Gaylord Entertainment granted the underwriter an option exercisable for a period of 30 days commencing August 7, 2012, to purchase up to 846,469 additional shares of its common stock at the public offering price, less the underwriter's discount.
00 per share, and yielded gross proceeds of $95,959,072, and net proceeds to HomeStreet, after giving effect to the underwriter's discount and transaction costs, of $88,717,834.
7 million from its senior note offering, net of the underwriter's discount and expenses.
Upon the deduction of underwriter's discount and related expenses, the amount of approximately $4.
The net proceeds of the offering to CBL, including the exercise of the underwriter's over-allotment and after underwriter's discount, will be approximately $115 million.
Volterra has granted the underwriters a 30-day option to purchase up to an additional 675,000 shares at the initial public offering price less underwriter's discount.
5 million of common stock; and Com21, Inc (Nasdaq:CMTO) has agreed to purchase $1 million of common stock at the offering price net of the underwriter's discount in a concurrent offering.
Net proceeds from the offering to CharterMac, after underwriter's discount and expenses, will be approximately $80.
The proceeds from the offering after deducting the underwriter's discount and non-accountable expenses will be $2,958,127.
The net proceeds of the offering to CBL, after underwriter's discount and before giving effect to the exercise of the over-allotment option, will be approximately $74.
3 million after the underwriter's discount and expenses, were applied to reduce the company's outstanding indebtedness.