undigested securities

Undigested securities

Newly issued securities that are not purchased because of lack of demand during the initial public offering.

Undigested Securities

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.

undigested securities

The portion of a new security issue that remains unsold because of insufficient investor demand at the offering price.