Jointly and Severally


DEFINITION of 'Jointly and Severally'

1. A legal term describing a partnership in which individual decisions are bound to all parties involved and thus undivided.

2. A term used in underwriting syndicates to refer to the distinct responsibility of individual companies to sell a certain portion of unsold new issue.

BREAKING DOWN 'Jointly and Severally'

1. When an investor authorizes power of attorney to two separate lawyers jointly and severally, both lawyers can make binding decisions without the approval of the other lawyer.

2. For example, an underwriter who has jointly and severally agreed to a 30% stake in the sale of a new issue must sell 30% of any remaining unsold portion, even if that underwriter has already sold more than this amount in the initial sale. All members of the syndicate are responsible for any leftover shares.

  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Joint

    A legal term describing a transaction or agreement where two ...
  3. Syndicate

    A professional financial services group formed temporarily for ...
  4. Joint Bond

    A bond that is guaranteed by a party other than the issuer. A ...
  5. Initial Public Offering - IPO

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

    1. The process by which investment bankers raise investment capital ...
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