Western Account


DEFINITION of 'Western Account'

An offering agreement in which each underwriter in a consortium of underwriters is responsible only for selling its alloted amount of the new issue. Once participants have met their previously agreed upon target allotment sale, their liability in the offering is completed.

BREAKING DOWN 'Western Account'

A Western account is also known as a "divided account", as the share of liability is divided among the underwriters by the size of their allotment of the investment vehicle. It is the opposite of an "Eastern account", also known as an "undivided account".

  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Undivided Account

    An underwriting system in which each underwriter in the group ...
  3. New Issue

    A reference to a security that has been registered, issued and ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
  6. Eating Stock

    The forced purchase of a security when there are insufficient ...
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