Series 79: Competitive Pot

Taken from our FINRA Investment Banking Exam

Definition of the term Competitive Pot...

a method of distributing selling concessions to distribution participants from sales to institutional investors. Under this method, the institutional investor designates the distribution participant(s) that receive the concession. Given its involvement in road shows and other selling efforts, the lead underwriter normally receives a significant percentage of designations by institutions. Also called a jump ball. Compare with fixed pot.

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