Categories
Investments glossary

Back Stop

Spread the love


Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

A back stop is the act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. A company tries to raise capital through an issuance, and to guarantee the amount received through the issue, it gets a back stop from an underwriter or major shareholder (such as an investment bank) to buy any of the unsubscribed shares.



We uses YouTube API Services.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply