Eating Stock

What does it mean?
Purchasing stock not because you desire it but because you are forced to do so.

In Other Words...
Underwriters who can't find enough investors to purchase IPO shares are sometimes forced to eat stock. The underwriter is forced to purchase the shares that could not be sold to the public.

Related Links
IPO Basics Tutorial - What's an IPO, and how did everybody get so rich off them during the dot-com boom? We give you the scoop.

Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you!

Related Terms
Direct Public Offering | Gross Spread | Gun Jumping | IPO | Lock-up Agreement | Prospectus | Public Offering Price (POP) | Red Herring | Stock | Underwriter

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