Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered.
The pricing process involves generating and registering investor demand for shares before the issue price is determined.
Order book building is the de facto mechanism by which companies price their IPOs and is highly recommended by all major stock exchanges as the most efficient way to price securities.
A red herring is a preliminary prospectus filed with the SEC, usually in connection with an IPO, that omits key details of the issue, such as the price and number of shares offered.
In an undivided or eastern account, each underwriter takes responsibility for the sale of any shares that remain unsold by the other members of the syndicate.
A Western account is a type of AAU in which the parties to a consortium of underwriters agree to be responsible only for their own allocation of a new issue of securities.
The Depository Trust and Clearing Corporation (DTCC) is a financial services company that provides clearing and settlement services for financial markets.
An Export Trading Company (ETC) deals with exports for clients, focusing on all legal requirements and regulations that a company must follow before a country will allow its goods to be exported.