Selling Syndicate

Categories: IPO

See: Syndicate.

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Finance: What is a Selling Syndicate?6 Views

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finance a la shmoop. what is a selling syndicate? it's good thing we don't have

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a lisp - well it's just group of salespeople who work together as a team [money with definitions printed on it]

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in a few structured ways. that's about it. but calling it a whispery syndicate .ooh

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that sounds kind of mobish doesn't it? well in a selling syndicate there are a

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series of documents and contractual sales agreements that get negotiated [flow chart]

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among the key players. they're cleverly titled syndicate letters or agreements

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among underwriters -and see that underwriter there that's like the people

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who take a company public and why do you need a syndicate. well you got a sell to

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a whole bunch of buy side people so that the stock floats and a lot of shares

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trade and make it liquid .see that's how that works that's why you need a

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syndicate. and they're basically two types of syndicate :a western-type which

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means more or less every person for themselves which basically means just [definitions displayed]

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sell the IPO shares Mortimer, sell them! a Western account holder essentially buys

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the shares they're given to sell like the syndicate buys them from the issuing

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company and then turns around and sells them to mutual funds and hedge funds and

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you know Bernie from the investment club. if the Western syndicate can't sell

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those shares well they eat them they own them that's it .it's done. an Eastern

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syndicate or Eastern account runs more as a forced partnership. Eastern account

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syndicates require that members sell not only their own allotment but also the

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amount that is not sold by other syndicate members. meaning they have to

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sell the West Coast stuff along with the east coast stuff if that was an issue. got [map of the U.S.]

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it ? it's all about teamwork, and all that stuff. and there you go. you now know a

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thing or two about the wild world of selling syndicates. so yeah forget about

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Biggie and 2pac .this is the real East versus West feud worth beefing over [2 men grimace at each other]

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