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indication of interest

 - 2 dictionary results
Financial Dictionary

Indication of Interest - IOI

An underwriting expression showing a conditional, non-binding interest in buying a security that is currently in registration (awaiting effectiveness by the SEC). The investor's broker is required to provide the investor with a preliminary prospectus.

Investopedia Commentary

The IOI is non-binding because it is illegal to sell a security while still in the registration process.

Related Links

IPO Basics Tutorial

See also: IPO, Prospectus, Underwriting

Also spelled: IOI

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Financial Dictionary

indication of interest

An investor's expression of interest in purchasing part of a new security issue before the issue comes to market. Brokers frequently seek indications of interest from clients even though the indications are not firm commitments to purchase the security. Compare circle. See also underbooked.

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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