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Finance Dictionary and Glossary of Investment Terms
Circle
Definition 1.
Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price.
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Definition 2.
The term used to indicate which potential purchasers of an upcoming offering have agreed to buy at a specified price. The name derives from the fact that an underwriter or Registered Representative goes down a list of potential purchasers and circles those who commit to the purchase.
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