Syndicate

Published: | Updated: November 4, 2017

Definition - What does Syndicate mean?

A syndicate is a set of people or organizations that form a group, either temporarily or permanently, for a business purpose. Those who take the initiative to found one usually do so because those involved face a project that is too large and complicated for one person or one organization to handle alone.

Insuranceopedia explains Syndicate

Insurance companies might form a syndicate, for example, when a company cannot rely on a single insurance firm to meet the insurance needs of its employees.

Usually, each member of the syndicate takes on a share of the financial risk, or a particular risk. The sharing of risks is not always equal and one syndicate member can take on more risks than another.

Temporary syndicates can be disbanded when a financial project they have undertaken is completed.


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