Selling Concession

Selling concession is a discount to the public offering price given to a selling group to facilitate an initial, secondary, or international securities offering. Securities offerings are administered by an underwriting syndicate composed of a managing group, an underwriting group, and a selling group.

The managing group assists in preparing and filing the prospectus, performs due diligence, and structures the underwriting syndicate for the offering. The underwriting group builds an order book and commits financially to acquire unpurchased shares through the offering.

The selling group, created by the managing group, functions as a broker by marketing the securities to its customers, and communicating the clients’ requests for shares to the underwriting group.

Selling Concession