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 $17â€”profiting $2 per share.
Investment dictionary. Academic. 2012.
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Gross spread — refers to the fees that underwriters receive for arranging and underwriting an offering of debt or equity securities. The gross spread for an initial public offering (IPO) can be as high as 7% while the gross spread on a debt offering can be as… … Wikipedia
Gross spread — The fraction of the gross proceeds of an underwritten securities offering that is paid as compensation to the underwriters of the offering. The New York Times Financial Glossary … Financial and business terms
gross spread — The fraction of the gross proceeds of an underwritten ( underwrite) securities offering that is paid as compensation to the underwriters of the offering. Bloomberg Financial Dictionary … Financial and business terms
gross spread — In finance, the difference between the price paid by an investment banker for an issue and the price paid by the buying public … Black's law dictionary
gross margin — margin, gross margin, net margin, security margin, variation margin (1) An amount of cash or collateral that a buyer or borrower must provide in excess of value owed to that buyer or borrower by a seller, lender or depositor. Ensures performance… … Financial and business terms
Gross Processing Margin - GPM — The difference between the cost of a raw commodity and the income it generates once sold as a finished product. The gross processing margin will be adjusted for each different commodity. For example, the GPM for oil is called the crack spread;… … Investment dictionary
Gross, Nebraska — Infobox Settlement official name = Gross, Nebraska settlement type = Village nickname = motto = imagesize = image caption = image imagesize = image caption = image mapsize = 250px map caption = Location of Gross, Nebraska mapsize1 = map caption1 … Wikipedia
Net interest spread — refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. It is considered analogous to the gross margin of non financial companies. Net interest spread is expressed as interest yield on… … Wikipedia
Spark spread — The spark spread is the theoretical gross margin of a gas fired power plant from selling a unit of electricity, having bought the fuel required to produce this unit of electricity. All other costs (operation and maintenance, capital and other… … Wikipedia
Dick Gross — Richard Andrew Landa Gross (born 16 November 1954 in Melbourne, Australia) was President of the Municipal Association of Victoria, and former three time Mayor of the City of Port Phillip, Australia, from 1998–2000 and in 2004, and has served on… … Wikipedia