Purchase and sale(redirected from Underwritten Offerings)
Purchase and sale
A method of securities distribution in which a firm purchases securities from the issuer for its own account at a stated price and then resells them, as contrasted with a best-efforts sale.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Purchase and Sale
A method of underwriting in which an underwriter buys an issue for his/her own account and then attempts to sell the issue to other investors. If the underwriter is unsuccessful in placing the issue, he/she keeps what remains. It contrasts with various other forms of underwriting, notably best-efforts sale, in which the underwriter returns the remaining issue to the issuer. The Bank of Canada uses a form of the purchase and sale method, known as a Purchase and Resale Agreement, when selling its treasury securities. It is also called an underwritten offering.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved