Talk:Bought deal

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These two paragraphs were at the bottom of the article:

Note that stating bought deals are usually priced at a larger discount to market, which is logical and correct, contradicts the statement immediately above that the "financing can only be done at a discount too steep to market price." The dealer that buys the securities as principal intends to sell them at a higher price than he paid. If the securities are to be priced at a larger discount to market to make them easier to sell the dealers have paid the issuing company even less.

This is a distinction without a difference. Bought dels are used probably because the issuer has some doubts that the entire issue will be sold by brokers acting as agents and thus the issuer prefers the dealers to act as principals to ensure that all the capital needed is raised promptly.

I moved them here since it seemed more appropriate.