Glossary of Municipal Securities Terms


A group of underwriters formed to purchase (underwrite) a new issue of municipal securities from the issuer and offer it for resale to the general public. The syndicate is organized for the purposes of sharing the risks of underwriting the issue, obtaining sufficient capital to purchase an issue and broadening the distribution channels of the issue to the investing public. Most syndicates are generally structured as undivided (eastern) accounts, in which the liability for any unsold portion of the issue according to each member’s percentage participation in the syndicate, rather than divided (western) accounts. See: AGREEMENT AMONG UNDERWRITERS; DIVIDED OR WESTERN ACCOUNT; EASTERN OR UNDIVIDED ACCOUNT; MANAGER; PARTICIPATION; UNDERWRITE; UNDERWRITER. Compare: SELLING GROUP.

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