buy on opening
purchase early in day a purchase of securities or insurance policies made at the beginning of the trading day
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purchase early in day a purchase of securities or insurance policies made at the beginning of the trading day
in secondary market trading increases beyond the offering price, which is usually the case. If, however, the price in the secondary market comes under pressure (i.e. there is a lot of flipping), the underwriter buys back the shares in the open market.
By Jos van Bommel
An open offer combines a pro rata offer to existing stockholders with a private placing. Although stockholders retain their preemption rights, the rights cannot be traded and are therefore worthless unless the stockholder chooses to buy new shares. This type of offer is now standard in the United
By Seth Armitage
or covers the short sale at a later date by buying shares in the open market and delivering them to the lender. By shorting stock against the PIPE shares, the fund locks in the PIPE deal purchase discount. With a traditional PIPE, if the market price of the issuer’s common stock drops below the discounted
By William K. Sjostrom, Jr
For good corporate governance to work, open and honest communication is necessary, with transparent policies and practices, clear lines of authority, and strong internal controls and audit functions, backed by a board that can act with clear independence from management.
Definitions of ’buy on opening’ and meaning of ’buy on opening’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’buy on opening’ and other financial terms with our online QFINANCE Financial Dictionary.