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 ?
Some in Prime Minister Theresa May's Conservative Party are against the open-ended nature of the backstop, as it could see the UK being tied to a customs union with the EU even after the transitional period ends in 2020.
"The backstop is part of the Withdrawal Agreement, and the Withdrawal Agreement is not open for renegotiation.
The Daily Telegraph newspaper reported that May's Brexit Minister Dominic Raab had privately demanded the right to pull Britain out of the "backstop" arrangement for the Irish border after three months.
"The Irish position remains consistent and v clear that a 'time-limited backstop' or a backstop that could be ended by UK unilaterally would never be agreed to by Ireland or the European Union," Irish Foreign Minister Simon Coveney said on Twitter.
In this context, non-discretionary backstop requirements (i.e.
The results show that, after 20 years, the statutory prudential backstop would lead to a decrease in the CET1 capital ratio of 205 basis points for the average European bank.
Tsubaki offers a wide selection of backstops and clutch products designed to fit the needs of specific applications, including internal and external backstops as well as overrunning and indexing clutches.
She said, 'We are working on a backstop and we need a backstop for the Single Resolution Fund (SRF).'
Ministers are also expected to address the question of backstops in the context of the future European mechanism for restructuring banks in the eurozone, and in member states taking part in bank supervision: the famous Single Resolution Mechanism.
"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.
If the national governments were also unable to fill the gap, alternate public backstop should be used.
Maintenance: Externally mounted high-speed backstops are usually quite easy to maintain.