concession

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Concession

The per-share or per-bond compensation of a selling group for participating in a corporate underwriting.

Balance of Concessions

An agreement in which one country reduces tariffs on its imports from another country in exchange for an equivalent, or at least similar, reduction from the second country. The balance of concessions is intended to stimulate international commerce between the two countries. It is also called reciprocity or simply a concession.

Underwriting Fee

The compensation that an underwriter receives for placing a new issue with investors. It is calculated as a discount from the price of the new issue. For example, an issuer may sell the underwriter a bond at $990 per bond. The underwriter will then place the issue at $1,000, allowing it to make a $10 profit. This profit is the underwriting fee. It is also called a concession.

concession

The dollar discount from a security's retail selling price received by members of an underwriting syndicate. For example, a syndicate member paying $995 for a bond to be sold at par (that is, at $1,000) is receiving a $5 concession. Also called selling concession.

concession

(1) A discount, rebate, or abatement. Lease concessions may consist of free rent, below-market rent, a larger than normal build-out allowance, reserved parking, 5-year anniversary renovation allowance,or any number of other economic incentives to induce one to lease in a particular building. When investigating the purchase of an income-producing property, one should examine each and every lease in its entirety to determine the existence of any lease concessions that would adversely affect an economic analysis of the property,and one should also obtain estoppel certificates from tenants so that there are no agreements outside the terms of the written leases.(2) A business that operates within the confines of another business or on another property,but usually without a lease. Examples include a shoe-shine concession at the airport, the hot-dog concession at the ball park,or the designer fragrance concession in a department store.

References in periodicals archive ?
"BP has been allowed back in the bidding process, and has been informed it can submit its bid for the concession," the UAE oil official says.
In addition, the constraints relating to the length of the concessions adjusted to the operator's return on investment are perceived as non-operational by many.
But Debenhams confirmed yesterday that the Jane Norman brand will no longer be available in its stores due to the termination of the concession agreement.
Pioneer has a 50% interest in the Cherouq Concession and will have a 30% interest in the concession derived from the Anaguid Permit.
In 2008, Beach acquired a 20 percent interest in each of the North Shadwan and South East July concessions, in the Gulf of Suez, Egypt.
The Abu Sennan concession, 300km west of Cairo, covers approximately 1,600 square kilometers and contains four oil prospects to be drilled in fiscal 2011.
In fact, Rave brought in $343,234 in July alone, almost as much as the entire year's worth of concessions sold at the Riverdale 10.
"Given the current economic uncertainty, we expect tenant effective rent to decline in more markets next year and concessions to continue to grow," explained Coutts.
PANAMA Highway concessions Concessions for rehabilitation
Anthony Joseph, president of Concessions International L.L.C., parent company of Concessions Miami, says that once renovations are complete, he projects "revenues of $16 million the first year." Concessions International, L.L.C.
In winning the concession Copenhagen Airports reportedly outbid German airport operator Fraport and French operator Vinci Airports and Vinci Concessions by promising to spend EUR526m on investments in the terminals.
profit, is the exclusive reason for concession, we speak about economic concessions, which are governed by provisions of the trade law.