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The practice of brokerage houses exchanging IPO shares with top executives for reciprocating business from their companies.

Investopedia Says:
A lucrative means of enticing the business of large companies. By swaying the decision of the top executives, investment brokerage houses can secure a quid pro quo type of arrangement.

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


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Dubious investment banking practice whereby shares in an Initial Public Offering are allocated to senior managers of the issuing company to profit them personally and entice them to direct future business to the investment bank.

 
 

 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more