DEFINITION of 'Booster Shot'

The name given to the first formal recommendation report issued by an underwriter for an IPO. It is presented in the process of the public offering.

BREAKING DOWN 'Booster Shot'

The booster shot acts as a way to reinforce attractiveness of the new issue. The underwriter attempts to ensure a successful offering by strengthening the issues appeal.

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  1. Do underwriters make guarantees to sell an entire IPO issue?

    Underwriters represent the group of representatives from an investment bank whose main responsibility is to complete the ... Read Answer >>
  2. How does insurance underwriting differ from investment underwriting?

    Understand the difference between insurance underwriting and investment underwriting, including what types of risks an underwriter ... Read Answer >>
  3. How does an underwriter syndicate work together on an initial public offering (IPO)?

    Learn how underwriting syndicates work together when helping a company undertake an initial public offering, and learn about ... Read Answer >>
  4. What are some roles of an investment bank?

    Explore the world of investment banking and discover the various functions investment bankers serve, such as handling IPOs ... Read Answer >>
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