Exchange Currency

eating stock

What an underwriter does when he/she can't find enough buyers and is forced to purchase the stock for his/her own account. To cover for risk associated with not being able to find enough buyers for an issue, underwriters charge an underwriting fee. Thus, even in an underwriter is "eating" stock, he/she might still make a profit on the deal. However, in the situation that a new issue is severely undersubscribed, the underwriter might make a loss on the deal.

Related information about eating stock:
  1. Eating Stock Definition | Investopedia
    Eating stock often applies to underwriters of an initial public offering (IPO), if a certain level of subscription is guaranteed but is not met. This allows the company ...
     
  2. Eating Stock - Financial Dictionary - The Free Dictionary
    When an underwriter can't find buyers for a stock and therefore has to buy them for his own account. Eating Stock. The act of buying stock one is legally required ...
     
  3. What is eating stock? definition and meaning - InvestorWords.com
    Definition of eating stock: What an underwriter does when he/she can't find enough buyers and is forced to purchase the stock for his/her own account. To cover ...
     
  4. What is eating stock? - BusinessDictionary.com
    Definition of eating stock: Having to buy stock because there is a need to purchase but not a want to purchase. This happens when stockbrokers cannot find ...
     
  5. Healthy Eating Stock Photos Images, Royalty Free Healthy Eating ...
    Matches 1 - 60 of 338889 ... healthy eating Search and download from millions of ...
     
  6. Eating Images and Stock Photos. 605,199 eating photography and ...
    605199 Eating stock photos and images. Fotosearch Stock Photography and Stock Footage helps you find the perfect photo or footage, fast! We feature ...
     
  7. Eating Stock Photos / Pictures / Photography / Royalty Free Images ...
    Stock photo, image, picture, photography of eating.
     
  8. Eating Stock Photos, Eating Stock Photography, Eating Stock ...
    Results 1 - 100 of 1071254 ... Download eating Stock Photos and eating Vector Art at affordable rates. Search over 22 million high res royalty free images and ...