BizTerm Definition
Selling Group
Full Definition

Members of the selling group are part of the syndicate, the group of underwriters formed to underwrite an IPO. Today, the term "selling group" is a bit of a misnomer because these underwriters usually get no actual shares to sell. The manager and co-managers reserve the actual selling of IPO shares (and the accompanying fees) to themselves. Selling group members are usually listed on the prospectus because they performed prior services to the company going public and get only a small portion of the fees from the offering. However, selling group members do share legal and financial risks of the underwriting.


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