Book Runner

AAA

DEFINITION of 'Book Runner'

The main underwriter or lead manager in the issuance of new equity, debt or securities instruments. In investment banking, the book runner is the underwriting firm that "runs," or who is in charge, of the books. A large, leveraged buyout could involve multiple companies, and the book runner works with the other participating firms. Typically, one company takes the responsibility of "running" or handling the books, and the book runner is listed first among the other underwriters participating in the issuance. More than one book runner can manage a security issuance, in which case the involved parties are called "joint book runners."


Also called managing underwriter or syndicate manager.

INVESTOPEDIA EXPLAINS 'Book Runner'

In investment banking, a syndicate is comprised of a group of underwriters who are responsible for placing a new equity, debt or security issue with investors. The book runner typically assigns parts of the new issue to other underwriting firms for placement, while keeping the largest part for itself. The book runner syndicates with other underwriting firms in order to reduce its risk in the issuance of the new equity, debt or security.

RELATED TERMS
  1. Underwriter Syndicate

    A temporary group of investment banks and broker-dealers who ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Underwriting

    1. The process by which investment bankers raise investment capital ...
  4. Book Building

    The process by which an underwriter attempts to determine at ...
  5. Syndicate

    A professional financial services group formed temporarily for ...
  6. Society of Actuaries (SOA)

    The SOA is a professional organization for actuaries in the U.S., ...
Related Articles
  1. 5 Tips For Investing In IPOs
    Investing

    5 Tips For Investing In IPOs

  2. IPO Lock-Ups Stop Insider Selling
    Investing Basics

    IPO Lock-Ups Stop Insider Selling

  3. Do underwriters make guarantees to sell ...
    Investing

    Do underwriters make guarantees to sell ...

  4. 20 Tools For Building Up Your Portfolio
    Options & Futures

    20 Tools For Building Up Your Portfolio

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center