Standby agreement

(redirected from standby)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to standby: standby computer

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.
References in periodicals archive ?
DoE regulation requiring under 100mW AC/DC adapter standby power consumption and tighter efficiency requirements.
OFF MODE: the condition in which an energy-using product - (I) is connected to a main power source; (II) is not providing any standby or active mode function.
This 20 W power supply (DER-188) is capable of providing standby output power of 0.
Another factor to consider in the standby rate debate is the recovery of stranded costs.
2 Advantages and disadvantages of standby database solution
Our household total of standby waste is around 60 watts an hour, or 525 kilowatts a year, costing pounds 65.
The problem is what gets recorded: The heading of the INS (000) or the actual heading on the standby compass (say 003) or corrective heading.
In the middle of the range, the 1106D-E66TAG3 produces 120 kW for prime applications and 132 kW for standby at 1500 rpm, while at 1800 rpm it puts out 135 kW in prime mode and 150 kW in standby.
To make it easier for customers to take advantage of the new Standby Capacity on Demand for ESS feature, IBM is offering customers the opportunity to implement this new enhancement, with no convenience charges.
TV satellite boxes are one of the biggest standby power guzzlers, using anywhere from 7 to 40 watts, says Meier, partly because they must maintain a continuous connection to the satellite system.
Active Standby Site: Dispersed configuration of production site for greater continuity, Digex will split a client's infrastructure between multiple facilities using the IDCN.

Full browser ?