securities dealers who affiliate with an underwriting group on an agency basis to assist in distribution of a new offering of securities. Members collect a commission or concession fee for securities placed. The group ordinarily includes members of the original underwriting group. It may be required in some instances to purchase any unsold portion of the offering.
group of dealers appointed by the syndicate manager of an underwriting group, as agent for the other underwriters, to market a new or secondary issue to the public; also called selling syndicate. The selling group typically includes members of the underwriting group but varies in size with the size of the issue, sometimes running into several hundred dealers. The selling group is governed by the selling group agreement, also called the selected dealer agreement. It sets forth the terms of the relationship, establishes the commission (or selling concession. as it is called), and provides for the termination of the group, usually in 30 days. The selling group may or may not be obligated to purchase unsold shares.
