firm commitment underwriting
USA
firm commitment underwriting. Also known as firm commitment offering.
As opposed to a best efforts offering, in the context of securities and capital markets, an underwriting where the underwriters commit to purchase all of the securities being offered by the company at a negotiated discount regardless of whether investors purchase the securities. Any securities not resold to the public are paid for and held by the underwriters for their own account.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • firm commitment underwriting — An underwriting in which an investment banking ( investment bank) firm commits to buy and sell an entire issue of stock and assumes all financial responsibility for any unsold shares. Bloomberg Financial Dictionary …   Financial and business terms

  • Firm commitment underwriting — An undewriting in which an investment banking firm commits to buy the entire issue and assumes all financial responsibility for any unsold shares. The New York Times Financial Glossary …   Financial and business terms

  • firm commitment offering — USA firm commitment underwriting. Also known as firm commitment offering. As opposed to a best efforts offering, in the context of securities and capital markets, an underwriting where the underwriters commit to purchase all of the securities… …   Law dictionary

  • Firm Commitment — 1. A lending institution s promise to enter into a loan agreement with a specific entity within a certain period of time. 2. An underwriter s agreement to assume all inventory risk and purchase all securities directly from the issuer for sale to… …   Investment dictionary

  • best efforts underwriting — USA best efforts underwriting, Also known as best efforts offering. In a best efforts underwriting, the underwriters do not agree to purchase all of the securities from the issuer. Underwriters agree to use their best efforts to sell the… …   Law dictionary

  • Pitch Book — A pitch book is a marketing device used by an investment bank. It consists of a careful arrangement and analysis of the investment considerations of a potential or current client, and/or a reference for comparison for an employee in an investment …   Wikipedia

  • твердое обязательство — Предоставление кредитов: термин, используемый кредиторами по отношению к безусловному обязательству о предоставлении кредита конкретному займополучателю в течение определенного периода и, если необходимо, под конкретную собственность. См. также… …   Финансово-инвестиционный толковый словарь

  • best efforts offering — USA I best efforts deal, Also known as best efforts offering. A bank loan financing where an agent bank agrees to use its best efforts (or commercially reasonable efforts) to arrange a syndicate of lenders that will make the loan but has no… …   Law dictionary

  • Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond …   Wikipedia

  • underwriter — un·der·writ·er / ən dər ˌrī tər/ n 1 a: a person (as an individual or a company) who underwrites an insurance policy: insurer b: a person who assesses risks to be covered by an insurance policy 2: a person (as an individual or company) who… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”