noun General Slang

Spinning

· noun · finance

Slipping hot IPO shares to executives to win their company's banking business.

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Definitions

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A bribery dressed as an allocation. The bank hands a corporate exec personal shares in a red-hot IPO that's guaranteed to pop, the exec flips for an easy six figures, and a few months later their company hires that same bank for its next deal. Banned by FINRA Rule 5131 after Frank Quattrone made it famous in the dot-com era.

“The Quattrone case put spinning on the front page — every bulge bracket had been doing it.”
by community
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Spinning In A Sentence

The Quattrone case put spinning on the front page — every bulge bracket had been doing it.

Origin & Usage

Surfaced publicly in the late 1990s tech-IPO boom; formally banned by NASD/FINRA in 2003.

Variants IPO spinning
Tags #finance#wall-street#ipo#ethics

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