bought deal

bought deal definition - finance
An underwriting deal in which the underwriter offers a firm commitment to purchase the companyÂ’s securi-
ties, thereby assuming the risk if the deal is poorly received by the market. The underwriterÂ’s fee is the difference, or spread, between the purchase price and the price the instrument sells for on the open market. Also called firm-commitment underwriting.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.