bought deal

bought deal
security issue in which one or two underwriters buy the entire issue. Also known as a guaranteed or fixed-price sale; opposite of a best-efforts sale. Bloomberg Financial Dictionary
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A means of issuing Eurobonds. The lead manager of the issuer buys the whole issue on predetermined terms and price and then places the bonds with its own clients. Dresdner Kleinwort Wasserstein financial glossary
See also fixed price reoffer. Dresdner Kleinwort Wasserstein financial glossary

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bought deal bought deal deal2

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   Commitment from an underwriter or lead manager to purchase the whole issue of a security for resale to the secondary market. This method transfers the risk of being unable to sell a whole issue at the offering price from the issuer to the underwriter.

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bought deal UK US noun [C]
STOCK MARKET, FINANCE an arrangement in which a company sells shares to a bank or financial organization, which then sells the shares to investors: »

The bank handled a bought deal of one million shares, buying at £697 and selling at £700.


Financial and business terms. 2012.

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Look at other dictionaries:

  • bought deal — An investor (typically, a securities house) taking a block of shares (either a new issue or an existing holding) onto its own books with a view to trading out its position at a profit. This is a means used to issue Eurobonds. Practical Law… …   Law dictionary

  • Bought deal — A bought deal occurs when an underwriter, such as an investment bank or a syndicate, purchases securities from an issuer before selling them to the public. The investment bank (or underwriter) acts as rather than and thus actually goes long in… …   Wikipedia

  • Bought deal — Security issue where one or two underwriters buy the entire issue. The New York Times Financial Glossary * * * bought deal bought deal ➔ deal2 * * *    Commitment from an underwriter or lead manager to purchase the whole issue of a security for… …   Financial and business terms

  • bought deal — A method of raising capital for acquisitions or other purposes, used by listed companies as an alternative to a rights issue or placing. The company invites market makers or banks to bid for new shares, selling them to the highest bidder, who… …   Accounting dictionary

  • Bought Deal — A new share issue that is bought entirely by one underwriter to resell to investors. An underwriter will only do a bought deal if it is confident there is enough demand for the shares …   Investment dictionary

  • bought deal — 1) A method of raising capital for acquisitions or other purposes, used by listed companies as an alternative to a rights issue or placing The company invites market makers or banks to bid for new shares, selling them to the highest bidder, who… …   Big dictionary of business and management

  • bought deal — /bɔ:t di:l/ noun a method of selling shares in a new company or selling an issue of new shares in an existing company, where securities houses guarantee to buy all the shares on offer at a fixed price …   Dictionary of banking and finance

  • competitive bought deal — A form of underwriting agreement, generally similar to a straightforward bought deal, in which the borrower seeks simultaneous competitive quotations from a number of banks for the purchase of an entire new issue of bonds, or similar securities,… …   Accounting dictionary

  • deal — ▪ I. deal deal 1 [diːl] verb dealt PTandPP [delt] FINANCE COMMERCE deal in something phrasal verb [transitive] if a person or company deals in a particular type …   Financial and business terms

  • Deal or No Deal (Australian game show) — Deal or No Deal The logo for Deal or No Deal Australia Genre Game show Created by En …   Wikipedia

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