Breaking The Syndicate

AAA

DEFINITION of 'Breaking The Syndicate'

The dissolution of a group of investment bankers that created a syndication to underwrite the issue of a particular security. Prior to termination of the agreement the underwriters must sell the securities at the offering price. The syndicate usually terminates 30 days after the sale date, but can be broken earlier upon mutual agreement of the participants.

INVESTOPEDIA EXPLAINS 'Breaking The Syndicate'

Syndicates are usually broken due to one of two reasons: (1) the issue has been successfully distributed or (2) the underwriters cannot place the securities at the offer price. If the syndication is dissolved prior to 30 days following the security sale date group members are free to sell remaining holdings independent of original price restrictions.

RELATED TERMS
  1. Syndicate

    A professional financial services group formed temporarily for ...
  2. Stock

    A type of security that signifies ownership in a corporation ...
  3. Security

    A financial instrument that represents: an ownership position ...
  4. Issuer

    A legal entity that develops, registers and sells securities ...
  5. Underwriter

    A company or other entity that administers the public issuance ...
  6. Equity

    1. A stock or any other security representing an ownership interest. ...
RELATED FAQS
  1. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
  2. How can an investment banker switch to a career in corporate finance?

    It's pretty easy for an investment banker to switch to a career in corporate finance. The career skills are easily transferable, ... Read Full Answer >>
  3. What are the best MBA programs for corporate finance?

    Opinions vary based on which publications you consult, but the best MBA programs for a career in corporate finance are at ... Read Full Answer >>
  4. How stressful is the typical corporate finance job?

    In the financial industry, corporate finance jobs are often contrasted with investment banking jobs. The traditional view ... Read Full Answer >>
  5. What should I study in school to prepare for a career in corporate finance?

    Depending on which area you want to specialize in, corporate finance can be one of the most competitive fields in business. ... Read Full Answer >>
  6. What are the differences between a Chartered Financial Analyst (CFA) and a Certified ...

    The differences between a Chartered Financial Analyst (CFA) and a Certified Financial Planner (CFP) are many, but comes down ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    A Primer On Preferred Stocks

    Offering both income and relative security, these uncommon shares may work for you.
  2. Investing Basics

    The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  3. Options & Futures

    The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  4. Personal Finance

    Investing In Emerging Market Debt

    This asset class has left much of its unstable past behind. Find out how to invest in it.
  5. Bonds & Fixed Income

    The Risks Of Mortgage-Backed Securities

    Find out how weighted average life guards against prepayment risk.
  6. Personal Finance

    The Fuel That Fed The Subprime Meltdown

    Take a look at the factors that caused this market to flare up and burn out.
  7. Mutual Funds & ETFs

    The Daily Routine Of A Hedge Fund Manager

    What does a hedge fund manager's day really look like? Investopedia provides an inside look at the routine.
  8. Trading Strategies

    IPO Flippers And The Companies Who Hate Them

    Learn how flipping activity affects an initial public offering.
  9. Brokers

    A Day in the Life of a Financial Advisor

    Financial advisors do a lot more than just manage portfolios, including prospecting, marketing, client servicing, compliance and administration.
  10. Professionals

    Finding & Retaining High-Net-Worth Clients

    Finding high-net-worth clients is just the beginning of the process of advising such individuals. Once you've found them, you need to find ways to retain them.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!