Definition

Key Term

A document that outlines the agreement between a security issuer and the securities firm, and discloses all information relevant to the security that the firm plans to issue.

$$

The type of agreement where the issuing firm incurs the risk that the proceeds from a stock or bond offering will be less than it needs to raise because the securities firm does not guarantee a price to the issuing firm.

$$

The costs firms incur by placing securities$.$

$$

This acts as a temporary source of financing until the borrower is able to gain access to other sources of funding.

$$