jointly and severally investment & finance definition
In legal terms, an agreement that if a member of a
group is unable to fulfill his or her contractual obligations the other members
of the group are responsible. For example, if an underwriter agrees to buy a
specific amount of a new securities issue and a member of the underwriting group
is unable to meet its obligation, the other members of the group are
responsible.
See jointly and severally in Wall Street Words
Of or relating to a securities offering in which the underwriter is responsible for its own allocation and for a proportionate share of any securities that remain unsold. Thus, a syndicate member allocated 10% of the securities to be sold would also be responsible for 10% of any unsold securities. Also called
severally and jointly. Compare
severally but not jointly.