Selling Syndicate

Security dealers or brokers united for the purpose of distributing a new or secondary security issue to the public; also called selling group. The group is chosen by a syndicate manager (managing underwriter). This group usually has an established reputation for the disposition of the type of securities to be issued. If the disposition of securities comes under the supervision of the SEC, then the appointment of such a group does not occur until filing and SEC confirmation takes place. A member of the selling syndicate may have to take a position in securities that have not yet been resold to the public.