Save yourself money by lowering the amount of tax you owe.
What Does Gross Spread Mean?
The term “gross spread” makes reference to the difference between the underwriting price received by a stock’s issuing company, and the real price at which the stock is placed on the market.
Underwriters make their money through charging the public a higher price for an IPO or “initial public offering” than the amount they paid to the issuing company. This is the way that the underwriters earn a profit. That monetary difference between the price paid by the underwriter and the offering price that they charge to the general public is the compensation that the underwriters take in for their efforts. Because of this, the gross spread is also sometimes known as “underwriting spread.”
The gross spread will be determined for each stock, and varies according to several different variables. These may include the number of issued stocks, the risk involved in the endeavor, the total volatility in the price of the security, etc. The average amount of the gross spread will usually comprise about 7% of the total cost.
For an example, consider the possibility that a stock is to be offered for sale to the public at $20 per share. In that case, the underwriters could wind up paying the issuing company somewhere in the neighborhood of $18.60 per share (again, note the 7% difference between the two prices). This may not seem like a lot of money, but when the underwriter has millions of shares being sold, that $1.40 per share can wind up bringing in millions of dollars!
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Related Articles at Investing School:
- What is Gross Margin
- What is Gross Profit?
- Bid Ask Spread
- What Exactly is the GDP (Gross Domestic Product)?
- Recession
CDTV.net Stock Market News and Dividend Report for Thu Dec 30, 2010
Roper Industries, Inc. (NYSE: ROP) Board of Directors has approved a quarterly cash dividend of $0.11 per share, payable on January 28, 2011, to stockholders of record as of January 7, 2011. This represents a 16% increase over the 2010 quarterly dividend of $0.0950 and marks the eighteenth consecutive year of increases in Roper’s dividend.
Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications.
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SL Green Realty Corp. (NYSE: SLG) board of directors has declared a dividend of $0.10 per share of common stock for the quarter ending December 31, 2010. The dividend is payable on January 14, 2011 to shareholders of record at the close of business on January 3, 2011.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties.
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State Street Corporation (NYSE: STT) announced a quarterly dividend of $0.01 per share of common stock, payable January 18, 2011, to stockholders of record as of January 3, 2011.
State Street Corporation (NYSE: STT) is one of the world’s leading providers of financial services to institutional investors
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For more information, visit www.cdtv.net
Disclosure: No positions
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Investment Luncheon New York (NY) Event: Municipal Bond and Equity Investments on January 19, 2011. For more information, visit www.cdtv.net/investment-luncheon-x.html
SNSS, DLKM, TELOZ, ORFG, WEBM – Stock Highlights From DrStockPick.com!
Douglas Lake Minerals (OTCBB:DLKM) is pleased to provide an update regarding its recently acquired Handeni Project which is located in the rapidly developing region of eastern Tanzania. Douglas Lakes’ 100% owned Handeni Project consists of four prospecting licenses covering approximately 800 km(2) which are directly adjacent to, and partly surround, Canaco Resources Inc’s (V.CAN) 200 km(2) Kilindi license which holds the Magambazi gold mineralization occurrence.
Interpretation of aeromagnetic data was successful in delineating prominent structural features including NW-SE shear zones of which five in the Company’s property area, with a total length of 143km, are given first order priority. These shear zones and their distances within the Company’s properties are: 1 – Southwestern shear zone (31km); 2 – Kimamba shear zone (41km); 3 – Kilima Mzinga – Kwandege main shear zone (28km); 4 – Mligazi shear zone (15km); and 5 – Magambazi – Mjembe (28km) shear zone. The Company has identified three further key elements in the delineation of gold mineralization which includes the prominence of NE-SW lineaments (seven in total), the role of SW to NE thrust planes and the use of radioelements to outline potential target areas. Three major SW to NE thrusts planes were also identified: a main thrust zone of 46km; and two additional thrusts zones of 5km and 3km each. In addition to the key elements sheath folding, open folds (2km to 10km scale) and boudinage provide additional targets with a second order priority.
Harp Sangha, the Company’s CEO, stated: “We are confident that the model developed based on the first exploration phase provides a substantial platform for understanding gold mineralization in the prospecting licenses as exemplified by the success with which the model predicts and outlines existing and known gold anomalies”. Phase two of the exploration program focused on the identified potential zones during an intensive stream sediment and soil sampling program. The results will be released in due course.
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Orofino Gold Corp. (ORFG.PK) mission is to become a 100,000 ounce gold producer from their first mine and to replicate this on each of the current optioned properties.
The vision of Orofino Gold Corp.:
* To become a good Joint Venture Partner
* To become a premier Mid Tier precious metals mining operation in Colombia
* To fast track their first mine to commercial production.
In addition, Orofino Gold is pleased to announce that the Board Of Directors has appointed Mr. Ning Shi Long as Chairman of the Board and Executive Director.
Mr. Ary Fernando Pernett Marque has been appointed as the new President/CEO & Executive Director of Orofino Gold Corp.
Orofino Gold Corp. engages in acquisition, exploration, and development of gold properties in Mexico and Colombia. The company has an option to acquire properties in the Sur de Bolivar Department of Colombia South America. Orofino Gold Corp. was formerly known as SNT Cleaning, Inc. and changed its name to Orofino Gold Corp. in December 2009. The company was founded in 2005 and is based in Central, Hong Kong.
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WebMediaBrands Inc (Nasdaq:WEBM) announced that it plans to begin a stock repurchase program whereby up to $2,000,000 worth of its common stock may be purchased from time to time in the open market.
WebMediaBrands Inc., an Internet media company, provides content, education, trade shows, and online job board services for media and business professionals primarily in the United States.
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Tel Offshore Trust (Nasdaq:TELOZ) announced that the units of beneficial interest in the Trust, or Units, will be suspended from trading by the NASDAQ prior to the opening of trading on January 3, 2011. As a result, the last day that the Units will be traded on the NASDAQ will be December 31, 2010. Beginning January 3, 2011, the Units will be quoted on the OTCQB™ Marketplace.
TEL Offshore Trust owns interest in the TEL Offshore Trust Partnership. The company owns overriding royalty interests in various oil and gas properties, located offshore Louisiana. TEL Offshore Trust was founded in 1983 and is based in Austin, Texas.
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Sunesis Pharmaceuticals Inc. (Nasdaq:SNSS) announced that the first patient has been randomized and dosed with blinded study treatment in its pivotal Phase 3 VALOR trial of vosaroxin, the company’s lead drug candidate, in combination with cytarabine in patients with first relapsed or refractory acute myeloid leukemia (AML).
Sunesis Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. Its lead product candidate is Voreloxin, an anticancer quinolone derivative (AQD) for the treatment of cancer.
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