Definition of "Eastern Account"

An underwriting account for a new issue of municipal securities whereby the underwriting group, as a whole, assumes financial responsibility for successful distribution of the issue--also called an "undivided account." A member's profits are contingent upon their percentage of participation in the account regardless of how much they sell. Member A, for example, has a 15% participation and sells 20% of the bonds. If the group sells only 90% of the bonds, member A is still responsible to sell unsold bonds equal to the same percentage of his original participation--that is 15%.