Definition of Selling group:
A selling group includes a number of financial institutions, including brokers and dealers, whose sole focus is to sell an allotment of new or second-issue securities to the public. This group often includes members of the original underwriting syndicate. Underwriters, who have purchased securities directly from the issuer, sell them at a markup to other members of the selling group, who buy them for less than the expected market price.
A selling group comprises all financial institutions involved in selling or marketing, but not necessarily underwriting, a new or secondary issue of debt or equity.
A banking syndicate of formed to underwrite an Initial Public Offering (IPO).
Meaning of Selling group & Selling group Definition