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Simple English definitions for legal terms

standby underwriting agreement

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A quick definition of standby underwriting agreement:

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

A more thorough explanation:

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

Company A wants to issue new shares of stock to raise capital. They hire an underwriter, Company B, to help with the public offering. Company B agrees to purchase any unsold shares of the stock for a fee. This agreement is a standby underwriting agreement.

Another example is when a municipality issues bonds to fund a project. The underwriter agrees to purchase any unsold bonds after the public offering for a fee.

These examples illustrate how a standby underwriting agreement works. The underwriter provides a safety net for the issuer by agreeing to purchase any unsold securities. This gives the issuer confidence to proceed with the public offering, knowing that they will not be left with unsold securities.

standby underwriting | standing aside a juror

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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