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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Eastern Account

Definition:

With an eastern account, underwriters bringing new securities on the market are responsible for their own securities and the securities (or accounts) of other underwriters working for the same company or issue. 

Example

Your company decides to go public and sell shares. You hire four underwriting firms to handle things. Each company is responsible for placing 25% of the stock. Company A is made up of mad geniuses who handle their account no problem, but Company B is struggling. Company A will have to help in placing more than 25% of the stock.