What is a full takedown in underwriting?

In underwriting, a full takedown refers specifically to the total amount the underwriter receives from the sale of securities, which includes both the underwriting fee and the selling concession. The underwriting fee is the amount that compensates the underwriter for their services in managing the issue and distributing the securities. The selling concession, on the other hand, is the part of the compensation that is paid to selling group members who assist in the distribution of the securities, thus incentivizing them to sell more.

Together, these two components make up the full takedown, reflecting the complete remuneration that the underwriter receives for facilitating the issuance and sale of the securities to the public. Understanding this concept is crucial as it highlights how underwriters are compensated and their role in the overall process of bringing new securities to market.