bought deal


An offering in which the underwriter (or syndicate) buys all the shares and resells them. When the underwriter's) are willing to take this risk it is a sign that they have a high degree of confidence in the issue's success.

Use bought deal in a sentence

You may want to try and offer a bought deal if you think that will be the best thing for your company.

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It was a bought deal and that meant that he would be buying all the shares and selling them to others.

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A bought deal signifies a very high level of expectation of return by the underwriters and/ or the syndicate making the offers; it does not mean that you can't possibly lose if you purchase, but it does mean that there is a higher than average level of confidence by the seller(s)

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