Underwriting Spread
The spread between the amount underwriters pay an issuing company for its securities and the amount the underwriters receive from selling the securities in the public offering.
Investopedia Commentary
The size of the underwriting spread depends on the negotiations and competitive bidding amongst underwriters and the company itself. The spread increases as the risks involved with the issuance increase.
Related Links
IPO Basics Tutorial
See also: Flotation Cost, IPO, Primary Market, Public Offering Price, Takedown, Underwriting
Also spelled: under writing spread, underwriter spread