7.4 The Underwriting Syndicate

What 5 things is the manager responsible for?

-establishing offer price -establish timing of offering -control ads -make required filings

What 4 things are contained in a selling group agreement:

-manager acts for all underwriters -amount securities allotted to each group -how payment for shares is made to underwriter -provisions limiting selling group members liability

What is a selling group?

act as agent with no commitment to buy securities

Who signs the underwriting agreement?

all underwriter members

What type of underwriting is used in most municipal securities?

competitive bid

What does the agreement amonng underwriters do?

details each underwriters commitment and liability for unsold shares

What type of underwriting is used in most corporate securities?

negotiated

Syndicate members act in a ____ capacity, selling group members act as ____.

principal agents

In a firm commitment offering what do syndicate members do?

purchase from issuer and distribute on agreed upon amount

Do syndicate members or selling group members take on financial liability?

syndicate

What describes the participants responsibilities and allocation of syndicate profits if any?

syndicate agreement or syndicate letter

Who acts on behalf of the syndicate?

syndicate manager

What is the name of the contract that establishes the relationship between an issuer and an underwriter?

underwriting agreement

What is the investment banker who negotiates with an issuer called?

underwriting manager or syndicate manager