Syndicate

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Syndicate

An association of individuals formed for the purpose of conducting a particular business; a Joint Venture.

A syndicate is a general term describing any group that is formed to conduct some type of business. For example, a syndicate may be formed by a group of investment bankers who underwrite and distribute new issues of Securities or blocks of outstanding issues. Syndicates can be organized as corporations or partnerships.Newspaper or press syndicates came into existence after the Civil War. A press syndicate sells the exclusive rights to entertainment features, such as gossip and advice columns, comic strips, and serialized books, to a subscribing newspaper in each territory. These "syndicated" features, which appear simultaneously around the United States, can generate large sums for the creators of the features and for the syndicate that sells them. Similarly, when television programs are syndicated, one station in each television market is allowed to broadcast a popular game show or rebroadcast a popular network series. A syndicated show may be televised at different times depending on the schedule of the local station. In contrast, on network television, a program is televised nationally at one scheduled time.

The term syndicate is also associated with Organized Crime. In the 1930s, the term crime syndicate was often used to describe a loose association of racketeers in control of organized crime throughout the United States. For example, the infamous "Murder, Inc." of the 1930s, which was part of a national crime syndicate, was founded to threaten, assault, or murder designated victims for a price. A member of the crime syndicate anywhere in the United States could contract with Murder, Inc., to hire a "hit man" to kill a person.

syndicate

n. a joint venture among individuals and/or corporations to accomplish a particular business objective, such as the purchase, development, and sale of a tract of real property, followed by division of the profits. A joint venture, and thus a syndicate, is much like a partnership, but has a specific objective or purpose after the completion of which it will dissolve. (See: joint venture)

References in periodicals archive ?
First, our analysis complements the previous literature on underwriters' stabilization activities (Aggarwal, 2000; Aggarwal and Conroy, 2000; Ellis et al., 2000; Ellis, 2006) and provides evidence that the other services provided by underwriting syndicates, in addition to market making, also influence the secondary market liquidity for IPOs.
They argue that issuers have increasingly chosen their lead underwriter and formed their underwriting syndicates on the basis of expected analyst coverage.
First, our analysis complements the previous literature regarding the underwriters' stabilization activities and provides evidence that other services provided by underwriting syndicates, in addition to market making, also influence the secondary market liquidity for IPOs.
Since losing its investors more than pounds 8 billion between 1988 and 1992, Lloyd's has consistently dropped market share to rivals in the United States, Bermuda and Europe, and admits that its arcane system of reforming underwriting syndicates every year and other unique administrative burdens have put it at a competitive disadvantage.
Traditionally, Lloyd's underwriting syndicates have been divided into marine, non-marine, aviation and motor categories, and members of each group were limited from venturing outside their area of expertise.
Until a few years ago most London marine brokers placed business through underwriting syndicates they owned and controlled.
The specialist insurance market, which is made up of 87 underwriting syndicates, reported half-year losses of pounds 697m in September after facing pounds 6.7bn in claims from major natural disasters in Australia, New Zealand, Japan and the United States.
One of the founding members of the Association of Lloyd's Members, the organization set up in 1980 by the name whose individual wealth capitalize the underwriting syndicates that comprise the Lloyd's market, recently wrote a letter to the daily insurance and shipping newspaper, Lloyd's List, demanding a referendum among the names on whether their liability for claims should extend beyond their Lloyd's deposit.
Lloyd's, which is made up of 78 underwriting syndicates, said the estimates may vary - but stressed there was unlikely to be any call on its central fund as a result of the events.