selling concession

Selling concession

The discount underwriters offer the selling group on securities in a new issue.

Selling Concession

The compensation that an underwriter receives for placing a new issue with investors. It is calculated as a discount from the price of the new issue. For example, an issuer may sell the underwriter a bond at $990 per bond. The underwriter will then place the issue at $1,000, allowing it to make a $10 profit. This profit is the selling concession. It is also simply called a concession.

selling concession

See concession.