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 ?
In particular, it provides observations regarding the possible effects of prudential backstops in combination with existing CRR provisions, Pillar 2 measures as well as the newly introduced accounting provision under IFRS9.
Banks should report on the compliance with the prudential provisioning backstop outlined in this addendum at least annually and explain deviations to the supervisor," the draft said.
She said, 'We are working on a backstop and we need a backstop for the Single Resolution Fund (SRF).
The question is even tougher considering that such a backstop would be foreseen for states not in the eurozone but taking part in the resolution mechanism.
A better way to stop BBs is to provide a backstop that has some give--like a piece of wall-to-wall carpet.
This time it is equipped with an additional computer-controlled axis on the backstop that speeds set-up between batches, resulting in less machine idle rune and higher output.
We have seen a boom with portable backstops in the high school market," says Kevin Murphy, Vice President of Sports Construction and Team Sports for American Athletic, Inc.
Densely packed bookshelves can also act as backstops.
On a firing range, the backstop is the steel banking or earthen berm behind the targets that catches the projectiles we fire.
Cleveland Football bleachers, playgrounds, baseball backstops,
Invitation to Bid: Bleacher, backstop repair & motorization
The US has said that it wanted Europe to build more backstops and bank capital, as it would be good for the region's economy, the US economy and also the world's economy.