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LSDefine

Simple English definitions for legal terms

standby commitment

Read a random definition: willful infringement

A quick definition of standby commitment:

A standby commitment is an agreement between a company selling stocks and a financial institution. The financial institution agrees to buy any unsold stocks after the public offering for a fee. This helps the company ensure that all of their stocks are sold and they receive the necessary funds.

A more thorough explanation:

A standby commitment is an agreement between an underwriter and an issuer of securities. The underwriter agrees to buy any unsold shares remaining after the public offering for a fee. This agreement is also known as a standby underwriting agreement.

ABC Company is planning to issue 1 million shares of stock to the public. They hire XYZ Underwriters to help with the offering. XYZ Underwriters agree to a standby commitment, which means they will buy any unsold shares after the public offering for a fee. If only 900,000 shares are sold, XYZ Underwriters will buy the remaining 100,000 shares.

Another example could be a bond offering. If a company is issuing bonds and is unsure if they will sell all of them, they may enter into a standby commitment with an underwriter. The underwriter will agree to buy any unsold bonds after the public offering for a fee.

These examples illustrate how a standby commitment works. It provides a safety net for the issuer of securities, ensuring that they will be able to sell all of their securities and raise the necessary funds. The underwriter takes on the risk of buying any unsold securities, but they are compensated for this risk with a fee.

standby charge | standby counsel

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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