Syndicate

As a financial term syndicate means several bankers or capitalists who join together to carry out or to insure the carrying out of some plan or scheme which involves a large amount of money. The commonest form of syndicate is an underwriting syndicate. For instance, the capital stock of a company (or a certain amount of it) is to be offered for public subscription at, = say, 100 (par). An underwriting syndicate is organized and it underwrites the entire i ue at 90. It, in effect, buys the whole i ue at 90. The stock taken (subscribed for) by the public practically is sold for account of the syndicate, for it receives the difference of 10 per cent between the price at which the stock is sold to the public (100) and the price at which it is underwritten by the underwriting syndicate (90). The syndicate is obliged to take the stock not sold to (subscribed for by) the public, but it has to pay only go for it as against 100 which the public has to pay. If all the stock is taken by the public (as is often the case) the underwriting syndicate has not to take and pay for any stock, but simply receives and divides among its members (in proportion to their shares in the syndicate) the amount represented by the difference of 10 per cent between the price of the stock to the public and the ~ price to the underwriting syndicate. If some of the stock is not taken by the public it may be apportioned among the members of the syndicate, but usually it is sold (in the open market or otherwise) for the syndicate. The bonds of a company (or a certain amount of them) may: be underwritten in the same way as its stock. A purchasing (or subscription) syndicate is different from an underwriting syndicate. A purchasing syndicate actually subscribes for takes and pays for the stock or bonds, which may be allotted to the members of the syndicate in proportion to their shares in it, or the stock or bonds may be sold and the profit (presuming that a sale is made at a profit) divided among the members. I ues of government, state and municipal bonds have often been bought by syndicates and immediately or very soon afterwards resold at high prices. Also see Reorganization. ig T. As printed on the tape by the stock ticker this letter means terminal, as terminal bonds. Table A. English term, meaning the regulations for the management of a limited company, contained in the first schedule to the Companies’ act, 1862. ° Tack. As a speculative term tack means the direction in which a speculator’s interest lies. Tack is used as a synonym for side. If, for instance, a speculator is said to be on or to have taken the long tack or bull tack on a stock or on the market it is meant that he is long of (in London bull of) a stock or of the market. On the other hand, if a speculator is said to be on or to have taken the short or bear tack on a stock or on the market it is meant that he is short of (in London bear of) a stock or of the market. The term tack is used not only in speculation in stocks, but in speculation in grain, cotton, coffee, etc. Tail-ender. A colloquial appellation for a small speculator who acquires an interest in one or more stocks as the movement in them is approaching its termination. | Tailer. A colloquial appellation for a small speculator who tries to follow a large speculator or group of speculators in his dealings. Take in. London Stock Exchange term: when a bargain is continued or carried over the money lender or bear who buys the stock for cash and sells it again for the next settlement is said to take it in. He generally receives a contango rate from the bull, who “gives on” the stock; but if the stock is so much.' oversold as to be scarce the taker-in pays the bull or lender of the stock a backwardation. Taken up. When a speculator who has bought a stock on margin pays for it in full he is said to have taken it up. On the London Stock Exchange a buyer takes up stock when instead of carrying over his bargain he pays for the stock and has it registered in his name. / Taker-in. London Stock Exchange term for one who takes in. stocks—either a lender on stocks or a bear of the stock who has to borrow it. See Take in. 514