Breaking The Syndicate
The destruction of one of the most powerful forces in the universe: a group of investment bankers.
Elon wants to raise money to build and sell combustible, disposable cars, but he can’t do it all by himself. So, he gathers a bunch of bankers, known as a “syndicate,” to underwrite a securities offering to be sold to the public.
Once that sale is completed, much like his customers, the syndicate is no longer of value to Elon...so he has it disbanded within a month.
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Finance: What is a Selling Syndicate?6 Views
finance a la shmoop. what is a selling syndicate? it's good thing we don't have
a lisp - well it's just group of salespeople who work together as a team [money with definitions printed on it]
in a few structured ways. that's about it. but calling it a whispery syndicate .ooh
that sounds kind of mobish doesn't it? well in a selling syndicate there are a
series of documents and contractual sales agreements that get negotiated [flow chart]
among the key players. they're cleverly titled syndicate letters or agreements
among underwriters -and see that underwriter there that's like the people
who take a company public and why do you need a syndicate. well you got a sell to
a whole bunch of buy side people so that the stock floats and a lot of shares
trade and make it liquid .see that's how that works that's why you need a
syndicate. and they're basically two types of syndicate :a western-type which
means more or less every person for themselves which basically means just [definitions displayed]
sell the IPO shares Mortimer, sell them! a Western account holder essentially buys
the shares they're given to sell like the syndicate buys them from the issuing
company and then turns around and sells them to mutual funds and hedge funds and
you know Bernie from the investment club. if the Western syndicate can't sell
those shares well they eat them they own them that's it .it's done. an Eastern
syndicate or Eastern account runs more as a forced partnership. Eastern account
syndicates require that members sell not only their own allotment but also the
amount that is not sold by other syndicate members. meaning they have to
sell the West Coast stuff along with the east coast stuff if that was an issue. got [map of the U.S.]
it ? it's all about teamwork, and all that stuff. and there you go. you now know a
thing or two about the wild world of selling syndicates. so yeah forget about
Biggie and 2pac .this is the real East versus West feud worth beefing over [2 men grimace at each other]
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