Circle

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Circle

Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price.

Circle

Informal; to attempt to find investors for underwriting purposes. Before a new issue, underwriters circle potential investors, who may or may not book an order to buy a portion. Potential investors are provided with a preliminary prospectus if they are circled and indicate interest. It is important to note that circling is non-binding because it is illegal to sell a security that has not been issued. See also: Overbooked, Underbooked, Fully Subscribed, Indication of Interest.

circle

A process used in finding interested buyers of a new security issue before determining the final price. A potential customer will be given a preliminary price (for example, the interest rate for a bond or the selling price for a stock) and will commit to a purchase if the issue is actually priced at the preliminary estimate. A different price permits the customer to back out or to get the first chance to buy the issue at the new price. Compare indication of interest.
References in periodicals archive ?
Parker's Circle of Safety program establishes Parker's Industrial Hose Products Division as a single, accountable source with a specific performance guarantee to protect distributors and end users from accidents, unplanned downtime and increased liability associated with failed industrial hose assemblies.
The Institute of Scrap Recycling Industries (ISRI), the Voice of the Recycling Industry, today announced the creation of the Circle of Safety Excellence a member-driven effort to promote and encourage safety in the workplace.
Poe: The FAA has introduced a program called Circle of Safety, a passenger-education program that emphasizes waiting for better weather instead of risking flying despite the weather.