Syndicate Bid

Syndicate bid - A syndicate bid is a bid, which represents the highest price the syndicate member (member of a bank, brokerage, or investment bank) will pay for the securities trading on the National Association of Securities Dealers Automated Quotations (NASDAQ) exchange. A syndicate bid is entered just prior to a secondary offering. The reason for a syndicate bid is to stabilize the market, since a secondary offering (an offering which occurs after the initial offering of stock has been made) increases the number of outstanding shares (float). Therefore the prices of that security will fluctuate and a syndicate bid is offered to stabilize the prices.