Glossary · Financing
Bought deal
An underwriter has committed capital to purchase the entire offering before remarketing.
In a bought deal, the underwriter (often a syndicate led by a major bank) commits its own capital to buy the entire offering from the issuer at a fixed price, then resells the securities to investors. The underwriter takes the price risk. Bought deals are typically completed in days; they signal that the lead bank is confident in the demand. For mining juniors, a bought deal is a strong validation signal.