Book Building
The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.
Investopedia Commentary
An underwriter "builds a book" by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay.
Related Links
IPO Basics Tutorial
Brokerage Functions: Underwriting And Agency Roles
See also: Demand, Direct Public Offering, Institutional Investor, IPO, Supply, Underwriting
Also spelled: bookbuilding
book building