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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Bought Deal

Definition:

When the underwriter buys the shares directly from the issuer before the filing of the prospectus and the IPO. The advantage to the company is that they are guaranteed to sell all of their shares. The advantage to the underwriter is that they get a discount on the price of the shares and can thus offer them at a lower price (which means it won't be as difficult to sell them).

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