The practice of brokerage houses exchanging IPO shares with top executives for reciprocating business from their companies. A lucrative means of enticing…

1. In the context of stocks, an influential investor who creates demand for a security because of their positive outlook on it.2. In the context of mutual…

A practice used by underwriters to stabilize the secondary market price of a security after an initial public offering (IPO). The bid is made on behalf…

A type of underwriting in which an investment bank (the underwriter) agrees to purchase the portion of the new securities issue that remains after a public…

A pre-arranged financing package offered to potential bidders in an acquisition. Staple financing is arranged by the investment bank advising the selling…

A company that is in the first stage of its operations. These companies are often initially bank rolled by their entrepreneurial founders as they attempt…

An issue of new securities that may present a selling challenge to an underwriter, usually because there's been some bad news about the issuing company…

Newly issued securities that an investor has agreed or stated his or her intent to buy prior to the issue date. When investors use rights, they expect…

An application by an investor to join a limited partnership. In most cases, the investor will have to fill out a form created by the general partner evaluating…

An offering of additional shares after the issuing company has already had an initial public offering (IPO). This sometimes means the company is strapped…

The ratio in which an acquiring company will offer its own shares in exchange for the target company's shares during a merger or acquisition. To calculate…

A group of bankers, insurers, etcetera, who work together on a large project. A syndicate only works together temporarily. They are commonly used for…

A contractual obligation used to protect a minority shareholder (usually in a venture capital deal). If a majority shareholder sells his or her stake…

1. The price at which underwriters obtain securities to be offered to the public. 2. The portion of securities that each investment banker will distribute…

An investor or company whose primary goal is to identify companies that are attractive to buy and that can be turned around to make a profit. A takeover…

A firm that has been targeted by another firm for a takeover. Companies are targeted for a number of reasons. A firm may be attractive because it possesses…

A document circulated to potential buyers of a specific security that may be offered for sale in the future. The document, often prepared by the investment…

A non-binding agreement setting forth the basic terms and conditions under which an investment will be made. Term sheets are templates that are used…

A written advertisement placed by investment bankers in a public offering of a security. It gives basic details about the issue and, in order of importance…

One of many influxes of cash that is part of a single round of investment.For example, you might hear: "The $6.3 million is the first traunch of an…

The pricing of an initial public offering (IPO) below its market value. When the offer price is lower than the price of the first trade, the stock is…

A situation in which the demand for an initial public offering of securities is less than the number of shares issued. Also known as an "underbooking…

A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter…

1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities…

The spread between the amount underwriters pay an issuing company for its securities and the amount the underwriters receive from selling the securities…

An underwriting system in which each underwriter in the group is responsible not only for selling its alloted amount of the new issue but also for selling…

An investment company that offers a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable "units" to investors for a specific period…

A stock that has just recently started trading. This type of security does not have an established pattern under various market conditions. Investors…

Newly issued securities that have not seen much interest, or subscriptions, from investors ahead of the issue date or have not been offered by brokerages…

Financing for new businesses. In other words, money provided by investors to startup firms and small businesses with perceived, long-term growth potential…

An investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to public funding…

The year in which the first influx of investment capital is delivered to a project or company. This marks when capital is contributed by venture capital…

A website that has become so popular that word of mouth and links generate an abnormally large amount of traffic to the site. Viral sites typically become…

1. A slang word for a venture capitalist who deprives an inventor of control over their own innovations and most of the money they should have made from…

1. The period of time between filing a registration statement with the SEC and the registration statement being declared effective by the SEC. Also known…

A common round of financing to owners of small companies that are not yet financially stable. When such financing is done, the new issuance serves to…

An offering agreement in which each underwriter in a consortium of underwriters is responsible only for selling its alloted amount of the new issue. Once…

Refers to a form of investment in oil and gas drilling operations in which the investor is directly liable for a portion of the ongoing costs associated…

Not a physical place, the zone of possible agreement is considered an area where two or more negotiating parties may find common ground. It is this area…