Gross Spread
2020-08-12 15:41
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The difference between the underwriting price received by the issuing company and the actual price offered to the public.
Taobiz explains Gross Spread
By charging the public a higher price for an IPO than the price paid to the issuing company, the underwriters are able to make a profit. For example a company might get $15 per share for their IPO, but the underwriters sell the stock to the public at $17--profiting $2 per share.
