Syndicate

AAA

DEFINITION of 'Syndicate'

A professional financial services group formed temporarily for the purpose of handling a large transaction that would be hard or impossible for the entities involved to handle individually. Syndication allows companies to pool their resources and share risks.

INVESTOPEDIA EXPLAINS 'Syndicate'

There are several different types of syndicates, including underwriting syndicates, banking syndicates and insurance syndicates.


For example, an underwriting syndicate is a group of investment banks that works together to issue new stock to the public. The bank that takes the lead in this endeavor is called the syndicate manager. Thirty days after the sale is complete, or if the securities cannot be sold at the offering price, the syndicate will break up.


Some other types of syndicates represent a joint effort, but are not temporary.

RELATED TERMS
  1. Breaking The Syndicate

    The dissolution of a group of investment bankers that created ...
  2. Club Deal

    A private equity buyout or the assumption of a controlling interest ...
  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. Penalty Bid

    A bid, or offer to purchase securities, provided by a lead underwriter ...
  6. Pre-Syndicate Bid

    A bid entered by a syndicate manager or underwriter in the Nasdaq ...
Related Articles
  1. Insurance

    The Rise Of The Modern Investment Bank ...

  2. Investing

    5 Tips For Investing In IPOs

  3. Investing

    How An IPO Is Valued

  4. Personal Finance

    The Ups And Downs Of Initial Public ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center