The difference between the offering price and the net proceeds given to the company. The difference is made up of various fees charged to the issuer, including the selling concession,, manager's fees, underwriting fees, and reallowance.
The difference between an IPO's offering price and the price the members of the syndicate pay for the shares.
This is the difference between the public offering price and what the issuing company receives. The investor pays no commission when he or she buys an IPO at the offer price and as such the underwriter makes its profit by charging the issuing company this gross spread.
The fraction of the gross proceeds of an underwritten securities offering that is paid as compensation to the underwriters of the offering.
The difference (spread) between a security's public offering price and the price paid to the issuer by an underwriter. The spread consists of the syndicate manager's fee, the underwriter's discount, and the selling concession--the discount offered to a selling group. See: Investment Banker; Spread; Underwriter
When you purchase an IPO at the offer price, you pay no commission. Instead, the underwriter charges the issuing company a gross spread, which is the difference between the public offering price and what the issuing company receives. Typically, this spread is 7% of the IPO's offering price. The profitability of doing IPOs is one important reason why investment banks focus on developing this business.
The difference between the price that investors are charged for a security and the amount of proceeds that are paid to the issuer. In the securities-underwriting business, those proceeds are the total amount of fees that a company pays to an underwriting group in connection with a public offering of its stock or bonds. This includes the selling concession paid to members of the underwriting group and the underwriting and management fees that are paid to the securities firms in charge of the offering.
The difference between the underwriting price received by the issuing company and the actual price offered to the public.
The dollar difference between the price which the issuing company receives for its securities and the price which the public pays for those securities. The sum of the selling concession, management fee and the underwriting fee equals the gross spread.
house of issue indication of interest
Gross spread refers to the fees that underwriters receive for arranging and underwriting an offering of debt or equity securities. The gross spread for an initial public offering (IPO) can be as high as 7%, while the gross spread on a debt offering can be as low as 0.05%.