Standby Underwriting (Standby)

What Does Standby Underwriting (Standby) Mean?
A type of underwriting in which an investment bank (the underwriter) agrees to purchase the portion of the new securities issue that remains after a public offering.

Investopedia explains Standby Underwriting (Standby)
This eliminates the issuer's risk, but it increases the investment banker's risk.

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Advance Commitment
Initial Public Offering - IPO
Investment Bank
Issuer
New Issue
Pilot Fishing
Underwriting
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