What is COMPETITIVE BID UNDERWRITING?

An UNDERWRITING of a NEW ISSUE of securities that is awarded by the issuing company to the UNDERWRITER that proposes the most favorable terms (generally a combination of lowest YIELD, lowest fees, broadest distribution, and strongest research and SECONDARY TRADING support). See also BEAUTY CONTEST, NEGOTIATED UNDERWRITING.

More On This Topic



Link to This Definition
Did you find this definition of COMPETITIVE BID UNDERWRITING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary