ZALIS GLOSSARY: gross-spread
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The difference between the underwriting price received by the issuing company and the actual price offered to the public.
Notes:
By charging the public a higher price for an IPO than the price paid to the issuing company, the underwriters are able to make a profit. For example a company might get $15 per share for their IPO, but the underwriters sell the stock to the public at $17--profiting $2 per share.