Freezer Account
From time to time, a public offering may not be successful and rather than reduce the size of the offering, an underwriter may be willing to purchase the unsold securities, referred to as an unsold allotment, in the underwriter’s inventory account, which may be referred to as the freezer account. The securities remain in the freezer for a period of time, which may range from 30 days to six months during which the underwriter establishes its investment intent.