Standby agreement

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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 ?
Efficiency exceeds proposed 2012 DoE regulation for AC/DC adapter standby power consumption and efficiency
One way to avoid an unfair trial, as well as to guide an earnest pro se defendant or check an unruly one, is to appoint standby counsel.
In McKaskle, the Court clarified the role of standby counsel.
The magnitude of standby energy consumption has been investigated in both national and international studies.
Early characterizations of residential standby energy consumption outside of the U.
The synchronization of logical standby database with primary database we can achieve by data transformation from protocol file into SQL language statement and its consequential applying on standby database.
For creation and consequently administration of standby databases configuration is possible to use SQL, PL/SQL, OEM commands, or Data Guard technology from Oracle.
Herter says, "I think a lot of the manufacturers are starting to recognize standby power as an issue and do something about it.
Most TVs have met the current 3 W target for standby power consumption, "and a lot are already running at 0.
Schmitz says, "although the industry had said it would not be possible to go below 6 W in standby, already many are now at 1 W.
The ruling concluded that, to the extent the certificates were secured by a standby letter of credit, they were "property" for Sec.

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