Market out clause

Definition:

A clause that may appear in an underwriting firm commitment that releases it from its purchase requirement if there are negative securities market developments.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

No Protest

Instructions given to a collecting bank not to protest a specific item in the event of non payment or non acceptance.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio