firm commitment underwriting

firm commitment underwriting definition - finance
An underwriting assignment in which the underwriter gives the issuing company a commitment to purchase the companyÂ’s securities, thereby assuming the risk if the deal is poorly received by the market and the price needs to be lowered. This is the most common type of underwriting assignment undertaken in the United States.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.