Pre-Syndicate Bid

Filed Under » ,
Dictionary Says

Definition of 'Pre-Syndicate Bid'

A bid entered by a syndicate manager or underwriter in the Nasdaq system to stabilize the price of a Nasdaq security prior to the effective date of a registered secondary offering.  The term "penalty bid" is also used.
Investopedia Says

Investopedia explains 'Pre-Syndicate Bid'

This is permissible under SEC Rule 10b-7; otherwise the practice is prohibited. Because the bid serves to stabilize the price of the stock, it helps facilitate distribution of the offering. This process is sometimes also referred to as "pegging".

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Nasdaq

    A computerized ...
  2. Securities And Exchange Commission - SEC

    A government ...
  3. Syndicate Bid

    A bid that can ...
  4. Secondary Offering

    1. The issuance ...
  5. Underwriting

    1. The process ...
  6. Pegging

    1. A method of ...
  7. Syndicate

    A professional ...
  8. Insider

    A director or ...
  9. Smart Money

    Cash invested or ...
  10. Zombie Titles

    A right to ...

Articles Of Interest

  1. A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  2. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way they operate and the securities that trade on them.
  3. Active Investment Management Misses The Mark

    Active investment management offers little advantage in the secondary capital markets.
  4. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  5. SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  6. The Currency Market Information Edge

    Unique features of the forex market may allow larger players to get a jump on smaller ones.
  7. The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  8. Why Late Trading Is Illegal

    Institutional investors got a sweet deal that soured retail investors' mutual fund returns.
  9. On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.
  10. Get To Know Your Consumer Financial Protection Bureau

    The CFPB is there to protect you and hear your voice. You can help with the economic recovery by getting to know the bureau.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center