HomeDefinitionsCompareDebt Standby commitmentThe financial definition for Standby commitment:An agreement between a corporation and investment firm that the firm will purchase whatever part of a stock issue that is offered in a rights offering that is not subscribed to in the two- to four- week standby period. Similar MatchesAdvance commitmentAdvance commitmentA promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price approximately. Firm commitment underwritingFirm commitment underwritingAn underwriting in which an investment banking firm commits to buy and sell an entire issue of stock and assumes all financial responsibility for any unsold shares. Loan commitmentLoan commitmentAssurance by a lender to make money available to a borrower on specific terms in return for a fee. Further SuggestionsProduction flow commitmentClick to compare definitions of Standby commitment Click to view definitions beginning st |