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 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 — 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

  • shelf offering — offering of registered securities covered by a prospectus whose distribution is not underwritten ( underwrite) on a firm commitment basis. The shares may be sold in one block or in small amounts from time to time in agency or principal… …   Financial and business terms

  • Initial public offering — (IPO), also referred to simply as a public offering , is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large… …   Wikipedia

  • 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

  • standby commitment — An agreement between a corporation and investment firm that the firm will purchase whatever part of a stock issue that is offered in a rights offering that is not subscribed to in the two to four week standby period. Bloomberg Financial… …   Financial and business terms

  • Europe, history of — Introduction       history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… …   Universalium

  • Mexico — /mek si koh /, n. 1. a republic in S North America. 97,563,374; 761,530 sq. mi. (1,972,363 sq. km). Cap.: Mexico City. 2. a state in central Mexico. 6,245,000; 8268 sq. mi. (21,415 sq. km). Cap.: Toluca. 3. Gulf of, Mexican, Golfo de México /gawl …   Universalium

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

  • Canada — /kan euh deuh/, n. a nation in N North America: a member of the Commonwealth of Nations. 29,123,194; 3,690,410 sq. mi. (9,558,160 sq. km). Cap.: Ottawa. * * * Canada Introduction Canada Background: A land of vast distances and rich natural… …   Universalium

Share the article and excerpts

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