Glossary of Municipal Securities Terms

ORDER PERIOD

In a competitive syndicate, the period of time following the competitive sale of a new issue during which non-priority orders submitted by syndicate members are allocated without consideration of time of submission. The length of the order period is usually determined by the manager. In a negotiated sale, the order period is the period of time established by the manager during which orders are accepted. The order period in a negotiated sale generally precedes the purchase of the issue by the underwriters from the issuer and is the period during which orders will be solicited for the purchase of securities in the primary offering. At times, order periods are established at subsequent points in the life of a syndicate. Such subsequent order periods may occur when securities are repriced or market conditions change. In some offerings, a “retail order period” may be designated during which orders will be accepted solely for retail customers, as defined by the issuer (or, in some cases, small orders for any type of customers). See: PRIORITY PROVISIONS.

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