Having completed the investigation, and having settled the matter of underwriting, the investment house now begins an active selling campaign. It first compiles a careful memorandum or circular consisting usually of four pages. The first page presents such details as the amount, interest, and security of the issue, as well as the net income of the corporation over a period of years. The circular may also include a letter from the president or some other officer setting forth prospective earnings of the borrowing corporation and the future of the industry. About the time the books are opened, advertisements concerning the issue appear in leading newspapers. If the issue is oversubscribed, the securities are allotted in reduced amounts. Thus, if there is an oversubscription of 25 per cent, a subscriber who has applied for one hundred shares will receive only seventy-five. During the life of the syndicate, members must sell the securities only at the agreed price, and every effort is made to prevent outsiders from undercutting this price. However, syndicates are only temporary organizations, for they pass out of existence after the disposal of the securities, which are then traded at fluctuating rates. If the securities are not sold within the stipulated time, the members may either prolong the life of the syndicate or dissolve it and divide proportionately the securities among the members who may dispose of their shares at any possible price. Securities are thus at times carried for a considerable time, and in such cases underwriters may endure heavy losses.

Even after the sale of the securities, the investment house often continues to take an active interest in the issues which it has floated. It will protect customers to whom it has sold the securities, and as far as possible will support the market. When large issues are involved, the investment house may seek representation on the board of directors in order to exert an influence over the policy of the corporation.