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Finance Dictionary and Glossary of Investment Terms
Jointly and Severally
1. A legal term describing a partnership wherein individual decisions are binding against all parties involved and thus undivided. 2. A term used in underwriting syndicates to refer to the distinct responsibility of individual companies to sell a certain portion of unsold new issue.
Municipal bond underwriting in which the account is undivided and syndicate members are responsible for unsold bonds in proportion to their participation, regardless of how many bonds they may have already sold. A firm with 20% of the account is responsible for selling 20% of the unsold bonds even if has already sold 25% of the total debt issue, for example. See: Severally but not jointly.
A type of agreement that establishes the responsibility for selling the securities in an underwriting. Members of an underwriting group agree to buy a certain amount of the new issue and to share liability for the obligations of the other members of the group.