Back Stop

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Definition: Back Stop

Back Stop
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Full Definition of Back Stop

An offer by a company to purchase shares of another company in a securities offering, if the shares are not purchased by any other investor by the end of the offering. If the first company offers a back stop for a given monetary amount, and that amount (or any portion of it) is not raised by the second company’s security offering, the company commits themselves to purchase shares up to the amount they offered.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/back-stop/
Modern Language Association (MLA):
Back Stop. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 20, 2024 https://payrollheaven.com/define/back-stop/.
Chicago Manual of Style (CMS):
Back Stop. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/back-stop/ (accessed: April 20, 2024).
American Psychological Association (APA):
Back Stop. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/back-stop/

Definition Sources

Definitions for Back Stop are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.