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LSDefine

Simple English definitions for legal terms

standby commitment

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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
10:04
Gross, piercings.
snow
10:04
@babycat: i was living the bob dylan life man. smoking cigs with a nose piercing while drinkin coffee. have been chasing that high since
BulbasaurNoLikeCardio
10:04
I have been wanting a piercing just to feel what it is like
snow
10:05
@BulbasaurNoLikeCardio: that makes sense. idk im just nervous of infections
snow
10:05
i have my ears pierced but thats it
babycat
10:05
I have a couple types of ear piercings and navel
BulbasaurNoLikeCardio
10:05
Only dirty people get infections from tattoos, higher chance of an allergy to the ink. Just go to a legit shop
Dkk
10:06
I just don't like the idea of the ink in my lymphnodes. That scares me.
good morning everyone
BulbasaurNoLikeCardio
10:06
I wanna try a nose peircing to see how it feels. Need a piercer friend who wants to practice on me cause I want to experience it but not keep it
babycat
10:06
You just want to know how it feels to be pierced?
snow
10:07
nose hurt like a bitch, but my tolerance is low
BulbasaurNoLikeCardio
10:07
Yes, I don't think having metal on my face or nips would be fun long term
Dkk
10:07
@BulbasaurNoLikeCardio: I would like that too. I would like to feel that.
honestly any face piercing hurts a lot less than any ear one for me
Dkk
10:07
Man, maybe I will eat another ghost pepper today.
BulbasaurNoLikeCardio
10:07
Like I have my whole body tattooed and dry lined litterally everywhere on my body to just see how it feels
i was so terrified to get my lip done and it was completely fine lmao
but i my industrial was not fun lol
Dkk
10:07
@jackfrost11770: yo you excited for arcane tonight! I haven't slept more than 4 hours in like 3 days.
triplethread
10:08
im back guys my break lasted 24 hours
Dkk
10:08
I feel my strength returning after being sick.
i'm gonna watch it tmrw!! and yes not ready lol omg i can't imagine it'll be a happy ending
triplethread
10:08
my nips are pierced
snow
10:08
thread we hoping kent today lmaooo
triplethread
10:08
YESSS
babycat
10:08
I have a conch that took forever to heal until i switched it to a hoop
snow
10:08
like a sea shell?
triplethread
10:08
Lips scare me more than nips
babycat
10:08
There’s a part of your ear called the conch, bc it’s shaped like that
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