Series 24: 4.1.4. The Syndicate

4.1.4. The Syndicate

In most cases, the underwriter selected by the issuer will not want to bear all the financial risk of the offering. For this reason, the underwriter will invite other investment banks to join in the underwriting. This group of underwriters is called the syndicate, and each member of the syndicate will be allotted a certain amount of shares that it will be responsible for selling. The underwriter that manages the underwriting