Bought deal

security issue where one or two underwriters buy the entire issue.

Similar financial terms

Overbought\oversold indicator
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to reaction.

Overbought
A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bullish and long have turned bearish.

Odd lot dealer
A broker who combines odd lots of securities from multiple buy or sell orders into round lots and executes transactions in those round lots.

Dealer options
Over-the-counter options, such as those offered by government and mortgage-backed securities dealers.

Marketed Deal
An arrangement in a public share distribution whereby the price at which the shares are sold is determined after a period of marketing activities. During the marketing period, the underwriters are able to contact potential purchasers to assess potential demand and price sensitivity. Shares continue to be publicly traded, if they had been previously listed. The underwriters minimize the price risk on resale (thereby lowering the discount to market), but the seller bears a risk of a price decline ...

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Did you know?

Present value factor

Factor used to calculate an estimate of the present value of an amount to be received in a future period.


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