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 ?
"If young people need a back stop, which some clearly do, I don't think the current insurance arrangements are performing as well as they could do."
Tenders are invited for Back Stop For Boxnhl Wagons Confirming To Rdso Schedule Of Technical Requirement Str No.
Your book review of Peter's Railway persuaded me to buy, and it's received a hugely enthusiastic response from my young children (Back Stop, PE 1 October).
The beleaguered firm's massive pounds 24bn taxpayer debt will be split into Government-backed bonds and sold off to investors as a "back stop" to fund a private sector rescue, Mr Darling said.
Albion must do without reliable all-rounder Gary Jones, who is determined to make a quick return from illness, but Jason Cross returns at back stop and his partnership with pace ace Matt Hopkins is vital if the Black & Whites are to return home with the points.
Limited Tenders are invited for Supply Of Back Stop Device For Gear Box In Chp Stage-1.
He had apparently cracked up under torture on a previous mission but was considered just the man for the ultra-risky Operation Back Stop programme.
Tenders are invited for Back Stop Cast Steel Machined To Drawing No.Irs W/Bd-699, Alt.3
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.Qca 18970 Alt -3