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. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center