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 over the marketing period. The marketing activities commonly take the form of a "road show" during which company executives make a series of presentations on the company's merits to members of the investment community. |
Similar financial terms
Nonmarketed claimsClaims that cannot be easily bought and sold in the financial markets, such as those of the government and litigants in lawsuits.
Marketed claims
Claims that can be bought and sold in financial markets, such as those of stockholders and bondholders.
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.
Bought deal
Security issue where one or two underwriters buy the entire issue.
Dealer options
Over-the-counter options, such as those offered by government and mortgage-backed securities dealers.
