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.

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.
References in periodicals archive ?
and Montgomery Securities will act as co-managers of the underwritten offerings.
Copies of the registration statement relating to the underwritten offerings may be obtained from Merrill Lynch & Co.
The proposed underwritten offering represents 5,100,000 shares, or approximately 16 percent of the 30,946,081 common shares of First USA Paymentech to be outstanding after the offering, (or approximately 18 percent, if the underwriters' over-allotment options are exercised in full).
Pursuant to the registration statement, sales of Common Stock may be made from time to time in market transactions or in privately negotiated transactions, including underwritten offerings.