underwriting spread

underwriting spread definition - business

underwriting spread

The difference in the price that an investor pays for a new security issue and the price paid the issuer by the lead underwriter. The underwriting spread is a function of a number of variables, including the size of the issue and the riskiness, or price volatility, of the security. Also called spread.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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