Definition of 'Book Runners'
The book runner typically works with the issuer of the security to determine the best way to structure the offering and to set the price. The book runner will also work with investors to determine their interest in the security and to place orders.
Once the orders have been placed, the book runner will aggregate them and determine the final price of the security. The book runner will then sell the security to investors at the agreed-upon price.
The book runner typically earns a fee for its services, which is based on a percentage of the total amount of the offering.
Book runners play an important role in the issuance of new securities. They help to ensure that the process is smooth and efficient, and that the security is sold at a fair price.
Here are some additional details about book runners:
* Book runners are typically large investment banks with a strong sales and trading presence.
* They have a team of experts who are responsible for marketing the security, setting the price, and underwriting the risk.
* Book runners are often involved in other aspects of the capital markets, such as mergers and acquisitions.
* Book runners are important to the capital markets because they help to facilitate the issuance of new securities.
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