Definition for: Gross Spread
The "gross spread" is the price at which a security is offered to the public minus the price at which that security was sold to the underwriter (usually an investment banking firm). The spread is a markup or premium that enables an underwriter to cover administrative and sales expenses and to make a profit. For example, if a company sold shares to an underwriter at $10 per share and the underwriter sold these shares to the public at $12 per share, the gross spread is $2.
