What Is an Undivided Account and how does it work?

Business & Management
#1

When a business prepares to undertake an initial public offering (IPO) of stock or bonds, it delegates marketing responsibilities to one or more underwriters. These are the financial firms in charge of overseeing the IPO process from start to finish, including setting a price for the shares and selling them. Large financial institutions and brokerage firms are among the initial buyers.
An undivided account is an initial public offering (IPO) that has many underwriters, each of whom is responsible for placing any unsold shares. That is, each company undertakes to pick up the slack if other underwriters fail to sell their assigned percentage of the total number of shares. An eastern account is a term used to describe this sort of account. There is, of course, a variety known as a western account.