Standby Agreement
(redirected from Standby Agreements)

0.01 sec.

Standby agreement

In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.

Standby Agreement

An agreement between the issuer of a security and its underwriters stating that the underwriters are responsible for any unsold portion of the issue. That is, the underwriters agree to buy the remainder of a new issue if they are unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriters. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriters with the possibility that they must purchase an issue with low value. As a result, underwriters charge a standby fee for a standby agreement. It is also called firm commitment underwriting or a backstopped deal.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
firm commitment Firm Commitment Underwriting standby commitment Standby Underwriting			As a result of the Standby Subscription Agreements being entered into, the total aggregate amount which institutional investors have committed to subscribe for new Redeemable Shares under standby agreements, if called upon by PIP to do so, has increased by [pounds sterling]50 million to [pounds sterling]150 million. PANTHEON INTERNATIONAL PARTICIPATIONS PLC - Standby Subscription ... by PR Newswire UK Disclose For example, its off-balance sheet standby agreements have grown 350 percent in 3 years and comprise nearly 50 percent of Farmer Mac's total loans. Farmer Mac: Some Progress Made, but Greater Attention to Risk ... by General Accounting Office Reports & Testimony The rights are expected to be freely transferable, and the bank expects that the offering will be backed by standby agreements. CALIFORNIA FEDERAL BANK ANNOUNCES STRATEGIC DIRECTION by PR Newswire			Standard & Poor's 500 Index Standard & Poor's 500 Stock Index Standard & Poor's Confidence Indicator Standard & Poor's Depositary Receipt Standard & Poor's MidCap 400 Index Standard & Poor's Midcap Index Standard & Poor's SmallCap 600 Index Standard & Poor's Underlying Rating Standard & Poor's/Citigroup Growth and Value Indexes Standard & Poor'sr Standard Deduction standard depth Standard Deviation Standard Error Standard Industrial Classification Standard Industrial Classification Code Standard Industrial Classification System standard metropolitan statistical area standard mortgage clause standard of care Standard Opinion standard practices of the trade Standardized Normal Distribution Standardized Value Standby Agreement Standby Agreements standby commitment standby fee standby letter of credit Standby Underwriter Standby Underwriting standing standing timber Standstill Agreement Stanza di compensazione stapled stock Starker transaction Start-Up Start-Up Company starter castle starter home starts State Administrator State Agent State and Local Government Series State Bank State Council of the People's Republic of China State Earnings-Related Pension Scheme State Guaranty Fund State Guaranty Funds State High Risk Pools for the Medically Uninsurable			Standards-Based Architecture Standards-Based Assessment & Measurement of Proficiency Standards-Based Bulletin Boards Standards-Based Change Process Standards-based Commercial Off the Shelf Standards-Based Curriculum Initiative Standards-Based Instruction Standards-Based Performance Awards Standards-Based Physical Education Standards-Based Self-Assessment Standards-Based Student Driven Learning Standards-Based System Standards/Requirements Identification Document Standarty I Kachestvo standby standby standby standby standby standby standby Standby (electricity) Standby (theater) Standby (theater) Standby (theater) Standby Advisory Board Standby agreement Standby agreement Standby agreement Standby agreement Standby Agreements Standby Air Standby Attitude Indicator Standby Base standby battery Standby Bond Purchase Agreement Standby Bond Purchase Agreements Standby commitment Standby Commitments standby computer Standby Continuous Replication Standby Diesel Generator Standby Electric Power Plant Standby Engines Standby fee Standby Fees Standby Fighter Director Ship Standby Fire Pump Standby Flight Display Standby for Further Clearance Standby Gas Treatment Standby Gas Treatment System standby guardianship Standby High Readiness Brigade Standby High Readiness Brigade for United Nations Operations

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Standby Agreement (redirected from Standby Agreements)

Standby Agreement
(redirected from Standby Agreements)