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hi everyone and welcome back to SW so in today's video we're gonna be going over what is the lead manager versus a book runner what they do and what's the difference some of you guys might not even know what this is about so don't worry I'm gonna be going over everything so you guys have a good understanding of what it is and I'm also gonna be providing some resources so that if you want to look more into it yourself so you can do that so stay tuned we're gonna jump into the video alrighty everybody so the first thing that I did was I headed over to the Wall Street Oasis site and I went over to the lead manager versus book runner page as you can see up here I'm gonna go ahead and link this in the description box below we're gonna go over a couple of different things to clarify this for you guys so you understand what a lead manager versus a book Runner is but also how they fit into the IPO process and what an IPO is an IPO is an initial public offering so it's when a company goes from private as listed to public in this process there are underwriters what is an underwriter put simply underwriters are the banks that sell IPO or initial public offering shares to institutions include all of the banks that sell IPO shares to institutions typically underwriters are segregated into book runners and comb and rest what is the lead manager and what is a co-manager the lead manager is the lead left manager of the initial public offering or IPO process for reference to place a portion of the deal means to find buyers for a chunk of the stock offering the lead manager found the majority of the deal and placed it on the other hand co managers are listed after the lead manager they assisted in placing the deal but not as much as the lead manager and are not a significant for the IPO the small names listed are syndicate members who place correspondingly smaller parts of the deal but didn't have anything to do with the underwriting process so what is the syndicate the syndicate is the network of banks that finds buyers for the sale of stock during an IPO or fall on process there could be as many as 12 syndicate banks so what is a book runner a book runner is the main underwriter or lead manager and the issuance of new equity debt or securities instruments in investment banking the book render is the underwriting firm that runs or who is in charge of the books these firms are responsible for tracking the parties interested in purchasing the IPO in order to help determine demand and price this is why you always hear that an initial public offering for a company may have done well or didn't do so well because that is based on the expectations another thing to keep in mind is a joint bookrunner is when there is more than one bank acting as the book runner / manager the last thing to mention is what is an arranger and arranger is the lead bank in the syndicate process for death this bank will typically put up a larger portion of the loan and perform administrative duties if you guys want a little more insight into what an IPO is you can go over here and look at this graphic and there's also a ton of comments below on the thread if you guys want to look at them for your reference or even leave one as well for yourself and get a response for some of the people in the community alrighty everybody I hope this video was really helpful to you if you have any questions don't hesitate to reach out to me again all my social medias will be in the description box below so make sure to go ahead and check that out message me reference wall street away since when you message me and that way I'm going to get back to you as soon as possible I hope this video was helpful for you guys if you want a like comment and share this that would be really helpful make sure to share it with your friends who are trying to break into finance so that they can spread the word and so that we can grow our channel if you guys want to stay updated on the videos make sure to subscribe and hit the notifications button so that every time you post one of these videos you'll get notified thanks again for tuning in and I'll see you in the next episode