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Simple English definitions for legal terms

underwriting spread

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A quick definition of underwriting spread:

Underwriting spread: The difference between the price that a company gets for selling its stocks or bonds to an underwriter and the price that the public pays for those same stocks or bonds. The underwriting spread is made up of different fees that the underwriter charges for its services. This spread compensates the underwriter for taking on the risk of buying the securities from the company and selling them to the public.

A more thorough explanation:

An underwriting spread is 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 its services and is made up of the manager's fee, the underwriter's discount, and the selling-group concession or discount.

  • When a company wants to issue stocks or bonds, they may hire an investment bank to underwrite the offering. The investment bank will buy the securities from the company at a discounted price and then sell them to the public at a higher price. The difference between the discounted price and the public offering price is the underwriting spread.
  • For example, if a company wants to issue $100 million in bonds and the investment bank agrees to underwrite the offering at a discount of 2%, the investment bank will buy the bonds from the company for $98 million. The investment bank will then sell the bonds to the public for $100 million, making a profit of $2 million, which is the underwriting spread.

These examples illustrate how the underwriting spread works in investment banking. The underwriter takes on the risk of buying the securities from the issuer and then selling them to the public. The underwriting spread compensates the underwriter for this risk and for the services provided in bringing the securities to market.

underwriting agreement | undesirable discharge

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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