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Technology Stocks : E*TRADE IPO Alert - Y2K and Beyond (EGRP) -- Ignore unavailable to you. Want to Upgrade?

To: noneed who wrote (9150)	11/5/2000 2:48:05 PM
From: noneed	Read Replies (1) \| Respond to of 10270

from individual investor: individualinvestor.com Syndicate This is the group of underwriters formed to underwrite an IPO. A syndicate might include underwriters who specialize in institutional business as well as retail-oriented firms. Syndicates once had a legitimate selling function. Today, the lead manager and co-managers usually do all of the selling. The syndicate members just share in the risk of underwriting the IPO. Selling Group Members of the selling group are part of the syndicate, the group of underwriters formed to underwrite an IPO. Today, the term "selling group" is a bit of a misnomer because these underwriters usually get no actual shares to sell. The manager and co-managers reserve the actual selling of IPO shares (and the accompanying fees) to themselves. Selling group members are usually listed on the prospectus because they performed prior services to the company going public and get only a small portion of the fees from the offering. However, selling group members do share legal and financial risks of the underwriting. Lead Manager This is the underwriter who has ultimate control of the offering. Other underwriters are called co-managers. The names of the managers appear on the bottom of the front page of the prospectus, with the lead manager's name in the uppermost left. The lead manager controls all aspects of the offering, including how many shares of stock the co-managers get to sell, the timing of theroad show, and the ultimate pricing of the deal.