In underwriting, a portion of a new issue that a member of a syndicate is responsible for placing with investors, where each member is responsible for placing the whole issue. Each underwriting firm in a syndicate is responsible for its own undivided account, but if a member of the syndicate fails to place its portion with investors, the other underwriters are under an obligation to "help out" that member until the entire issue is placed. This contrasts with a divided account, where underwriters are each assigned a portion of a new issue, and no underwriter is responsible for placing any part of the issue that it is not explicitly assigned.
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The account of an underwriting syndicate in which sales and liability are shared jointed rather than apportioned individually. Compare divided account.
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.