Book Building

What Does Book Building Mean?
The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.

Investopedia explains 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.

Related Terms

Demand
Direct Public Offering
Institutional Investor
IPO
Supply
Underwriting
More Related Terms

Related Links

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