CandleFocus Glossary Editor
An undivided or eastern account is a type of stock offering in which a group of underwriters purchases the entire offering or a portion of the offering for later sale to customers. The underwriters essentially become the stock owners, and then set the initial public offering (IPO) price, as well as coordinate marketing and distribute the shares.
In an undivided or eastern account, each underwriter is responsible for selling whatever shares remain unsold after other members of the syndicate have done their part. This drastically differs from a western account, in which underwriters are only responsible for their specific share of the offering.
The risks and potential rewards of an undivided account are greater than in a western account. Underwriters benefit from having the ability to exercise a greater degree of control, as well as share in the proceeds of the offering. As with most accounts, certain stipulations are applicable: underwriters are also accountable for any losses that may occur.
The eastern account is the most commonly used offering arrangement. Participating underwriters benefit from reduced risk and can potentially share in a greater portion of profits. To assume as little risk as possible, underwriters are only required to commit a relatively small amount of money in advance of the offering.
An undivided or eastern account is a popular way to reduce risk and potentially earn a greater return on the initial offering. This structure enables underwriters to assume a greater degree of control and potentially share in the proceeds of the offering, while limiting the amount of money they must commit in advance.
In an undivided or eastern account, each underwriter is responsible for selling whatever shares remain unsold after other members of the syndicate have done their part. This drastically differs from a western account, in which underwriters are only responsible for their specific share of the offering.
The risks and potential rewards of an undivided account are greater than in a western account. Underwriters benefit from having the ability to exercise a greater degree of control, as well as share in the proceeds of the offering. As with most accounts, certain stipulations are applicable: underwriters are also accountable for any losses that may occur.
The eastern account is the most commonly used offering arrangement. Participating underwriters benefit from reduced risk and can potentially share in a greater portion of profits. To assume as little risk as possible, underwriters are only required to commit a relatively small amount of money in advance of the offering.
An undivided or eastern account is a popular way to reduce risk and potentially earn a greater return on the initial offering. This structure enables underwriters to assume a greater degree of control and potentially share in the proceeds of the offering, while limiting the amount of money they must commit in advance.