What is a Bulge Bracket?
Bulge brackets have to do with the process of underwriting. Essentially, the bulge bracket is a collective term used to identify the investment firms in an underwriting syndicate that manage to place the largest number of issues with various investors. This ability to place a larger number of shares and securities in a given campaign is highly regarded and can lead to a great deal of excellent publicity for the firms involved. There are several advantages to being part of a bulge bracket. One of the immediate benefits is earning a prominent spot on the details of the security issue. An accepted tradition within the investment process is listing the members of the investment syndicate for an issue in the advertising that announces the completion of the transactions. Referred to as the tombstone for the issue, this advertising will give prominence to the firms that have earned the right to be included in the bulge bracket, by featuring their names first in the ad detail. The tombstone ca
