Undersubscribed

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Securities - sale - issue - primary market - subscription.

Undersubscribed describes a situation in a new securities issue subscription process.

When the issue is "undersubscribed", fewer commitments to buy are received from the market than the number of available securities.


Sub-underwriter's commitment
"A sub-underwriter is a member of a new issue syndicate who agrees to buy a certain proportion of the issue from the managers should the issue be undersubscribed.
They receive an underwriting fee and a selling concession on the principal amount of the securities for which they may subscribe."
Sub-underwriter - the Treasurer's Wiki.


See also