Indication of Interest - IOI

What is an 'Indication of Interest - IOI'

An indication of interest (IOI) is an underwriting expression showing a conditional, non-binding interest in buying a security that is currently in registration (awaiting effectiveness by the SEC). The investor's broker is required to provide the investor with a preliminary prospectus.

BREAKING DOWN 'Indication of Interest - IOI'

The IOI is non-binding because it is illegal to sell a security while still in the registration process.

RELATED TERMS
  1. SEC Form S-20

    A filing with the Securities and Exchange Commission (SEC), more ...
  2. Red Herring

    A preliminary prospectus filed by a company with the Securities ...
  3. Piggyback Registration Rights

    A form of registration rights that grants the investor the right ...
  4. SEC Form 424A

    The prospectus form that a company must file if it has made significant ...
  5. Effective Date

    The date, declared by the Securities & Exchange Commission ...
  6. SEC Form S-1

    The initial registration form for new securities required by ...
Related Articles
  1. Professionals

    THE SECURITIES ACT OF 1933

    The Securities Act of 1933 was the first major piece of securities industry regulation that was brought about largely as a result of the stock market crash of 1929. Other major laws were also ...
  2. Professionals

    The Prospectus

    Series 6, Section 8: The Prospectus. This section, Prospectus, relates to the registration and the registration process pertaining to a new issue.
  3. Professionals

    The Prospectus

    While the SEC is reviewing the securities’ registration statement, a registered representative is very limited as to what they may do with regard to the new issue. During the cooling off ...
  4. Professionals

    A. Introduction: Issuing Corporate Securities

    The Securities Act of 1933 was the first major piece of securities industry legislation and it regulates the primary market.
  5. Professionals

    The Prospectus

    While the SEC is reviewing the securities’ registration statement, a registered representative is very limited as to what they may do with regard to the new issue. During the cooling ...
  6. Professionals

    Registration

    FINRA/NASAA Series 26: Section 1 Registration. In this section the prosess of registering a new issue.
  7. Professionals

    Securities Act of 1933: Definitions

    FINRA/NASAA Series 26: Section 1 Securities Act of 1933: Definitions. In this section some important definitions from the securities act of 1933.
  8. Fundamental Analysis

    What's a Prospectus?

    The Security and Exchange Commission (SEC) requires that any company raising money from potential investors through the sale of securities must file a prospectus with the SEC and then provide ...
  9. Professionals

    Registration by Coordination

    FINRA/NASAA Series 63 - Registration by Coordination. In this section filiing requirements for registartion by coorrdination and how a registration becomes effective.
  10. Professionals

    Registration by Coordination

    FINRA/NASAA Series 66 - Registration by Coordination. This section describes the procedure for registration by coordination.
RELATED FAQS
  1. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
  2. How does piggyback registration work?

    Registration rights ensure that companies cooperate during the registration process through which investors register shares ... Read Answer >>
  3. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ... Read Answer >>
  4. How legally binding is a letter of intent?

    Find out when a letter of intent is binding and when it is not. Understand the roles of drafting language, relationships ... Read Answer >>
  5. Can you trade securities before you pass the Series 63 exam?

    Find out more about state registration and Series 63 exam scores. Learn how long these scores are valid and how registration ... Read Answer >>
  6. What is the difference between a prospectus and summary prospectus?

    Learn about the differences between the summary prospectus and statutory, or full, prospectus, and discover what mutual fund ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center