Book Building


DEFINITION of 'Book Building'

The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.

BREAKING DOWN 'Book Building'

An underwriter "builds a book" by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay.

  1. Book Runner

    The main underwriter or lead manager in the issuance of new equity, ...
  2. Institutional Investor

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  3. Direct Public Offering - DPO

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  4. Underwriting

    1. The process by which investment bankers raise investment capital ...
  5. Greenshoe Option

    A provision contained in an underwriting agreement that gives ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
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  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. What kind of assets can be traded on a secondary market?

    Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
  3. Why would a company decide to utilize H-shares over A-shares in its IPO?

    A company would decide to utilize H shares over A shares in its initial public offering (IPO) if that company believes it ... Read Full Answer >>
  4. How do I place a buy limit order if I want to buy a stock during an initial public ...

    During an initial public offering, or IPO, a trader may place a buy limit order by choosing "Buy" and "Limit" in the order ... Read Full Answer >>
  5. How do corporate actions affect floating stock?

    Corporate actions, defined as a company's actions that affect the amount of outstanding company stock shares, can either ... Read Full Answer >>
  6. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    The primary advantages for a company of listing on the Nasdaq exchange are lower listing fees and lower minimum requirements ... Read Full Answer >>

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