ShmoopTube

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finance a la shmoop what is a takedown well it's basically a commission or a [The definition of takedown]

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spread that investment bankers um take down from the proceeds raised on a

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securities offering ie an IPO well specifically that takers

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down are called the syndicate and we wish we could tell you that with [People playing cards and smoking]

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something mob-related but that's just a group of stock brokers who generally

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sell to institutional accounts like mutual funds hedge funds and a big fat

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family set of offices yeah like wealthy people's offices yeah at its essence the [Pile of cash]

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take down is the gross profit that each syndicate member makes after the

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placement of the securities after wire fees and other basic transactional costs

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are covered such as the sellers of the securities get their dough whatever [The words 'illustrative example time' fall out of a piggy bank]

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dot-com is selling 10 million shares of 20 bucks a pop the syndicate buys them

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for 19 bucks each five minutes before placing them or selling them to the buy [Definition of the buy side]

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side so there's a $1 spread in this placement and in most cases the lead

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underwriter gets some percentage of the gross spread off the top to cover the [Calculation of the underwriter commission]

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zillion dollars they spent on expensive lawyers and other bureaucrats being

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certain that the securities offering complied with the you know 742 laws all ['The Big Book of 742 Laws' appears]

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deriven from the 1933 and then 34 acts so if the lead banker gets a say a 15

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percent override well then 85 cents net is left over for the takedown to be

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distributed among the selling members of the syndicate and if any of those [Money being moved to the syndicate]

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selling members feels they've been cheated well get ready to see one of [People stand up angrily in a board room]

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these take down in this corner accountant wearing glasses 132 pounds so [Two men wearing boxing gloves ready to fight]

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yeah pale-skinned alright sorry pal pick the right career [Guy is punched and knocked down]

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