Equity Capital Markets

Syndicate

Definition

What is Syndicate?

A group of financial institutions working together to distribute or underwrite an offering.

Example in practice

Several banks form a syndicate for a large IPO.

Keep learning

The first public sale of a private company's shares, after which the shares may trade on an exchange.

A sale of newly issued securities in which the issuer receives the proceeds.

A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

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