standby underwriting Definition | Business Dictionaries from
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Business Glossary


Business Definition for: standby underwriting
standby underwriting

form of underwriting whereby the selling group agrees to purchase any outstanding shares of securities that have not been purchased after shareholders have exercised their preemptive rights to purchase new securities or exchange new securities for old ones, as in a reorganization or recapitalization . When the underwriter remarkets securities purchased through underwriting, he is acting as a dealer

See also best effort
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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