An arrangement in which an underwriter assumes the risk of bringing a new securities issue to market, by buying the issue from the issuer and guaranteeing sale of a certain number of shares to investors. More common than best efforts offering.
Related information about firm commitment offering:
- What is firm commitment offering? definition and meaning
Definition of firm commitment offering: An arrangement in which an underwriter assumes the risk of bringing a new securities issue to market, by buying the issue ...
- PLC - Firm Commitment Underwriting
Also known as firm commitment offering. As opposed to a best efforts underwriting (www.practicallaw.com/2-382-3268), in the context of securities and capital ...
- firm commitment offering
An arrangement in which an underwriter assumes the risk of bringing a new securities...
- Frequently asked questions about registered ... - Morrison Foerster
offering is an underwritten (a firm commitment) offering and will consider the nature of the marketing process in determining whether an offering is a “public ...
- Best Efforts Offering - Business Finance
With a firm commitment offering, the investment bank guarantees the number of securities it will sell and guarantees its commitment by purchasing the shares ...
- Firm Commitment Underwriting Law & Legal Definition
... the purchase price- determined through either competitive bidding or negotiation and the public offering price. It is also known as firm commitment offering.
- Best effort offering - Educate Yourself - Under the Oak
To more fully understand best effort offering, let's contrast it with the much more common "firm commitment offering," also known as a "bought commitment" or a ...
- withdrawn IPO - Richard Ivey School of Business - University of ...
initial prospectus, the investment bank in a firm-commitment offering ... contrast, a firm-commitment offering could succeed if the issuer chooses to lower its price.