Common Contracts
1 similar Backstop Agreement contracts
Backstop agreement pdfBackstop Agreement • March 16th, 2021
A backstop is a financial arrangement that creates a secondary source of funds in case the primary source is not enough to meet current needs. It can also be thought of as an insurance policy that covers the inadequacy of a source of funds.The backstop can take various forms in different contexts. The following are three applications that will be discussed in some detail in later sections:Backstop in underwritingPrivate equity backstopBackstop in financial managementBackstop in UnderwritingThe most common use of a backstop is seen in underwriting share issues or initial public offerings (IPOs)Initial Public Offering (IPO)An Initial Public Offering (IPO) is the first sale of stocks issued by a company to the public. Prior to an IPO, a company is considered a private company, usually with a small number of investors (founders, friends, family, and business investors such as venture capitalists or angel investors). Learn what an IPO is. In an IPO, a company wishing to raise equity capital
