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.

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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 >>
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    Registration rights ensure that companies cooperate during the registration process through which investors register shares ... Read Answer >>
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  5. Which statement is FALSE about a prospectus issued under the Securities Act of 1933?

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