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
References in periodicals archive ?
The company also said that the shareholder may sell shares regularly through underwritten offerings in privately negotiated transactions on the NASDAQ or otherwise under the registration statement once it becomes effective.
Norilsk is considering various strategic options for its 51.3%-stake in Stillwater, including underwritten offerings, open market or private sale.