Define: Gross Spread

Business, Legal & Accounting Glossary

Definition: Gross Spread



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Full Definition of Gross Spread


Gross spread refers to the fees that an underwriter receives in exchange for helping an issuer raise debt or equity capital. Typically, the gross spread for an IPO is 7%, while the gross spread on a debt offering may range from under 1% to 5%+.

For example, if a Company sells $100 million of shares in an IPO and the gross spread is 7%, the underwriting syndicate will receive fees of $7 million. These fees will be divided among the one or more underwriters hired for the offering.


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Definition Sources


Definitions for Gross Spread are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020