Selling Group

All financial institutions involved in selling or marketing a new issue of debt or equity but not necessarily participating in the underwriting consortium.

Investopedia Says:

In many cases, the selling group is simply the underwriting group and does not include anyone who is not responsible for underwriting a portion of the new issue. The reason why the selling group may include only the underwriters is that these underwriters are unwilling to let competitors who are not bearing any of the risk to participate in the selling process.

Alternatively, the selling group may include a number of parties whose sole focus is to sell an allotment of the newly issued securities on behalf of the underwriting group. In this case, the non-underwriting sellers are sold the securities at a markup, but still at a discount from the expected market price for the security. These non-underwriting sellers make money at the transaction by the spread between their price and the market price, if it's higher than what they paid for the security.

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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. See also Underwrite.