1. Describing a situation in which
underwriters in a
new issue are released from their previous obligation to
place the issue at a certain
price. That is, upon being freed up, the underwriters may
sell the new issue to
investors for whatever
price the investors are willing to
pay. This is especially common when there is an unusually large
demand for the new issue, which drives the
market price upwards. The
issuer frees up underwriters to raise more
capital.
2. Describing
money available to an investor after he/she
liquidates a
position. That is, freed up
capital is the extra
cash the investor now has on hand.