Negotiated Underwriting


DEFINITION of 'Negotiated Underwriting'

A process in which both the purchase price and the offering price for a new issue are negotiated between the issuer and a single underwriter.

BREAKING DOWN 'Negotiated Underwriting'

The underwriter pays the issuer a purchase price, and the public pays the offering price. The spread between the purchase price and the public offering price represents the proceeds to the underwriter.

  1. Best Efforts

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  2. Public Offering Price - POP

    The price at which new issues of stock are offered to the public ...
  3. Initial Public Offering - IPO

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

    1. The process by which investment bankers raise investment capital ...
  5. New Issue

    A reference to a security that has been registered, issued and ...
  6. Issuer

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