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Underwriter and Company Exec shaking hands over shares, illustrating the collaboration in setting the gross spread for an IPO

Understanding the Gross Spread: How Underwriters Profit from IPOs

November 26, 2024 FinanceFacts101 Business Finance

What is the Gross Spread? The term ‘gross spread’ refers to the profit that underwriters earn from an Initial Public Offering (IPO). In essence, it represents the difference between the price at which the underwriter buys shares from a company and the price at which they sell those same shares

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