Back Stop

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Back Stop

In an issue of new stock, a guarantee made by an investor, usually an institution, to a publicly-traded company that it will buy the remainder of an issue if the company is unable to place it all with other investors. For example, an institution may announce that it will provide 100% back stop to a company's new issue up to $50 million. If the company only raises $35 million by placing the security with other investors, the institution will buy the remaining $15 million worth of stock.
References in periodicals archive ?
monetary easing measures ahead of the release of the outcome of the Fed's two-day Federal Open Market Committee through Wednesday, prompting investors to buy back stocks, brokers said.
TOKYO, March 9 Kyodo Shares on the Tokyo Stock Exchange opened higher Tuesday, as investors bought back stocks following a 114.
Investors start bottom fishing, buying back stocks at a lower price," adds Clark.
But we also want to have a stock that is priced competitively with other banking companies; to do that is to care about your shareholders by buying back stocks when you can.
Until now, higher energy prices have done little to hold back stocks, but that seems to be changing a bit.
Although some investors were prompted to buy back stocks after the Nikkei plunged nearly 2 percent Wednesday, the yen's rise versus the euro weighed on export-linked shares, clouding hope for improvements in corporate earnings, brokers said.
Investors also opted to buy back stocks after the Nikkei index briefly fell below the psychologically important threshold of 8,500 in the previous session, but concern that a stronger yen may hurt exporters' earnings limited further gains, brokers said.
Share prices on the Tokyo Stock Exchange opened moderately higher Thursday, with investors continuing to buy back stocks following a recent sharp decline in share prices.
Share prices on the Tokyo Stock Exchange opened moderately higher Wednesday, as investors bought back stocks following Tuesday's decline in the prices.
Share prices in Tokyo opened moderately higher Friday, as investors bought back stocks on dips after the key Nikkei index once slipped below 16,000 Thursday for the first time in seven weeks.