Syndicate Bid

DEFINITION of 'Syndicate Bid'

A bid that can be entered in the Nasdaq system to stabilize the price of a Nasdaq security prior to the date of a secondary offering.

BREAKING DOWN 'Syndicate Bid'

A secondary offering increases the float. Therefore, stock prices of that security may fluctuate; a syndicate bid tries to stabilize this.

RELATED TERMS
  1. Pre-Syndicate Bid

    A bid entered by a syndicate manager or underwriter in the Nasdaq ...
  2. Stabilizing Bid

    A practice used by underwriters to stabilize the secondary market ...
  3. Syndicate

    A professional financial services group formed temporarily for ...
  4. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  5. Breaking The Syndicate

    The dissolution of a group of investment bankers that created ...
  6. Secondary Market

    A market where investors purchase securities or assets from other ...
Related Articles
  1. Professionals

    SYNDICATE OPERATION AND SETTLEMENT

    Creating a Syndicate Most municipal issues are sold to raise a substantial amount of money. In order to assist with the marketing of the issue and to spread the risk of underwriting the securities, ...
  2. Economics

    What is a Syndicate?

    A syndicate is a group of professionals that temporarily form into one entity to handle a large transaction that’s too big for each to handle alone.
  3. Professionals

    AWARDING THE ISSUE

    Awarding The Issue Once all bids have been submitted, the issuer and the bond council will meet to determine which syndicate will be awarded the issue. The bid with the lowest net interest cost ...
  4. Markets

    Comparing Primary And Secondary Capital Markets

    In the primary capital market, investors buy directly from the issuing company. In the secondary market, investors trade securities among themselves.
  5. Term

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  6. Investing Basics

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
  7. Professionals

    Introduction

    Investors, who do not purchase their stocks and bonds directly from the issuer, must purchase them from another investor. Investor-to-investor transactions are known as secondary market transactions. ...
  8. Professionals

    Locked And Crossed Markets

    Market makers may not enter quotes that would lock or cross the market. A locked market is one where the bid and offer are equal in price. For example, if another market maker came into the above ...
  9. Professionals

    Piggybacking A Quote

    If an OTC BB security has been quoted by another dealer for a minimum of 30 days, they may simply enter their own quote by piggybacking the current dealer’s quote so long as: The security ...
  10. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
RELATED FAQS
  1. What constitutes a secondary market?

    Find out what constitutes a secondary market, and learn why that term can be applied far more broadly than you might initially ... Read Answer >>
  2. Why do we need a secondary market?

    Find out why secondary markets play a crucial role in economic activity by promoting efficiency, safety, information and ... Read Answer >>
  3. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
  4. Under what circumstances might a syndicated loan be arranged?

    Learn about the types of syndicated loans, why some lenders choose to establish or join a syndicate, and why some borrowers ... Read Answer >>
  5. What kind of assets can be traded on a secondary market?

    Learn about the difference between the primary market and the secondary market, and what types of assets are traded on secondary ... Read Answer >>
  6. Who generally structures a syndicated loan?

    Learn what syndicated loans are, including how they are structured and administrated, usual payment terms and costs associated ... Read Answer >>
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