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Sticky Deal

 

An issue of new securities that may present a selling challenge to an underwriter, usually because there's been some bad news about the issuing company or overall economy.

Investopedia Says:
Underwriters who feel an issue will be a sticky deal may lower the offering price or withdraw the offering from the market entirely.

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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
Learning about these various activities can give insight into how securities are issued and traded. Brokerage Functions: Underwriting And Agency Roles


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New securities issue that the underwriter fears will be difficult to sell. Adverse market conditions, bad news about the issuing entity, or other factors may lead underwriters to say, "This will be a sticky deal at the price we have set." As a result, the price may be lowered or the offering withdrawn from the market.

 
 
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