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bought deal

 - 2 dictionary results
Financial Dictionary

Bought Deal

A new share issue that is bought entirely by one underwriter to resell to investors.

Investopedia Commentary

An underwriter will only do a bought deal if it is confident there is enough demand for the shares.

Related Links

IPO Basics Tutorial
Brokerage Functions: Underwriting And Agency Roles
Markets Demystified
The Murky Waters Of The IPO Market

See also: Investment Bank, IPO, Underwriting

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Financial Dictionary

bought deal

See firm commitment.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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