freed up


Freed up

A term used to indicate that an underwriting syndicate's members are no longer restricted to the fixed price agreed upon in the agreement among underwriters and are permitted to trade the security on a free market basis.

Freed Up

1. Describing a situation in which underwriters in a new issue are released from their previous obligation to place the issue at a certain price. That is, upon being freed up, the underwriters may sell the new issue to investors for whatever price the investors are willing to pay. This is especially common when there is an unusually large demand for the new issue, which drives the market price upwards. The issuer frees up underwriters to raise more capital.

2. Describing money available to an investor after he/she liquidates a position. That is, freed up capital is the extra cash the investor now has on hand.

freed up

To have released members of an underwriting syndicate from the obligation of selling a security at the fixed issue price.