undigested securities(redirected from Undigested Security)
Newly issued securities that are not purchased because of lack of demand during the initial public offering.
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The shares or bonds in a new issue that are not placed with investors because investors do not want them. Depending on the agreement with the issuer, the underwriting syndicate may be required to buy undigested securities itself. See also: Underbooked.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The portion of a new security issue that remains unsold because of insufficient investor demand at the offering price.
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.