Investopedia

Syndicate

Dictionary Says

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 Says

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.

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