Book building is the process by which an underwriter determines the price for an initial public offering (IPO) based on demand from institutional investors. The underwriter accepts orders from fund managers indicating how many shares they want and the price they are willing to pay, allowing the underwriter to build a book of demand to set the IPO price.
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Book building is the process by which an underwriter determines the price for an initial public offering (IPO) based on demand from institutional investors. The underwriter accepts orders from fund managers indicating how many shares they want and the price they are willing to pay, allowing the underwriter to build a book of demand to set the IPO price.
Book building is the process by which an underwriter determines the price for an initial public offering (IPO) based on demand from institutional investors. The underwriter accepts orders from fund managers indicating how many shares they want and the price they are willing to pay, allowing the underwriter to build a book of demand to set the IPO price.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
Book building is the process by which an underwriter determines the price for an initial public offering (IPO) based on demand from institutional investors. The underwriter accepts orders from fund managers indicating how many shares they want and the price they are willing to pay, allowing the underwriter to build a book of demand to set the IPO price.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
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Book Building
What Does Book Building Mean?
The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors.
Investopedia explains Book Building
An underwriter "builds a book" by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay.