Pot

DEFINITION of 'Pot'

The portion of a stock or bond issue that investment bankers return to the underwriter so the portion can be sold to institutional investors.

BREAKING DOWN 'Pot'

Depending upon the issue and the size of the pot, it may be very lucrative for the underwriter to sell inventory to institutional investors.

RELATED TERMS
  1. Underwriting Agreement

    A contract between a group of investment bankers who form an ...
  2. Pot Is Clean

    A slang phrase referring to a situation in which an underwriter ...
  3. Underwriting Fees

    Underwriting fees are monies collected by underwriters for performing ...
  4. Underwriting Risk

    The risk of loss borne by an underwriter. Underwriting risk generally ...
  5. Undivided Account

    An underwriting system in which each underwriter in the group ...
  6. Underwriting Spread

    The spread between the amount underwriters pay an issuing company ...
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RELATED FAQS
  1. How does insurance underwriting differ from investment underwriting?

    Understand the difference between insurance underwriting and investment underwriting, including what types of risks an underwriter ... Read Answer >>
  2. Do underwriters make guarantees to sell an entire IPO issue?

    Underwriters represent the group of representatives from an investment bank whose main responsibility is to complete the ... Read Answer >>
  3. What are examples of risks for all underwriter types?

    Learn about the risks faced by different types of underwriting activity. Explore specific examples of risks faced by insurance ... Read Answer >>
  4. How do I become an underwriter?

    Learn about the education, training and certification required to become an insurance underwriter as well as the important ... Read Answer >>
  5. What does the underwriter do in a new stock offering?

    Learn the role an underwriter plays for an initial public offering, and the steps an underwriter takes in preparing for an ... Read Answer >>
  6. What is real estate underwriting?

    See how underwriters for major lenders scrutinize real estate loans and manage their risk, and learn the origin of the term ... Read Answer >>
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