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 ?
However, we think it is a grave yard and that the back stop must be moved forward so that the number of animals that are lost because they are being starved is kept to an absolute minimum, " explained NBA chief executive, Robert Forster.
Ms Curnock Cook added: "Personally, I do feel we need to have a different approach on how we provide a back stop, that's an important consideration for the admissions process review, which we are still working on.
Captain Chris Britton deputises in the bowling box, while Mike Rudd strengthens the batting line-up - weakened by the loss of reliable opener Peter King with a hand injury - by playing at back stop.
Tenders are invited for Back Stop Cast Steel Machined To Drawing No.
LNG, a cleaner fuel compared to oil, serves as a back stop to renewable energy, reliability of which is known to be lesser.
Tenders are invited for Combined Back Stop And Retaining Clip To Drg No.
Constructed of anodized aluminum with a tool steel pinch blade that can be adjusted using forward and back stops to regulate its stroke, this pinch valve is normally open and uses the full force of pneumatic power to close it.