Undigested Securities

AAA

DEFINITION of 'Undigested Securities'

A new security issue that remains undistributed due to insufficient investor interest or public demand at the offering price. An underwriting group purchases a new securities issue from an issuing corporation and agrees to sell the issue for a profit to investors. Undigested securities are those new issue that have yet to be distributed even though they are available for purchase by investors.

INVESTOPEDIA EXPLAINS 'Undigested Securities'

The issue could be unappealing to investors for a number of different reasons. There could be negative press surrounding the issue, current economic conditions could be dampening interest in new securities issues, an array of other financial information could be flooding the investment community to the point where the new issues simply have not been analyzed due to time constraints, and so on. Just because a security is undigested doesn't mean it is low quality.

RELATED TERMS
  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Investment Banker

    An individual who works in a financial institution that is in ...
  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  4. Syndicate

    A professional financial services group formed temporarily for ...
  5. Lead Underwriter

    A investment bank or other financial outfit that has the primary ...
  6. Volcker Rule

    The Volcker rule separates investment banking, private equity ...
Related Articles
  1. The Rise Of The Modern Investment Bank ...
    Insurance

    The Rise Of The Modern Investment Bank ...

  2. Top Things To Know For An Investment ...
    Professionals

    Top Things To Know For An Investment ...

  3. How To Make $1 Million In Finance
    Professionals

    How To Make $1 Million In Finance

  4. Making It Big On Wall Street
    Professionals

    Making It Big On Wall Street

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center