Simple English definitions for legal terms
Read a random definition: repetitum namium
Gross spread is a term used in finance and investment banking. It refers to the difference between the price that an underwriter pays to the issuer of a security and the price paid by the public in the initial offering. This spread compensates the underwriter for their services and is made up of the manager's fee, the underwriter's discount, and the selling-group concession or discount. In simpler terms, gross spread is the profit that an underwriter makes from selling securities to the public.
Gross spread is a term used in finance and investment banking. It refers to the difference between the price paid by the underwriter to the issuer of a security and the price paid by the public in the initial offering. This spread compensates the underwriter for its services and includes the manager's fee, the underwriter's discount, and the selling-group concession or discount.
These examples illustrate how the gross spread is calculated and how it compensates the underwriter for its services in bringing the security to market.