underwriting spread

underwriting spread definition - finance
  1. The difference between money paid to a company that issues securities by the underwriter and the amount of money that is raised once the issues are sold. The underwriter keeps the difference.
  2. A fee paid by the securities issuer that may range from 1 percent to 2 percent for a bond offering. The underwriting spread sometimes went up to 7 percent for initial public offerings during the technology boom.

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

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