Standby fee

Definition:

Amount paid to an underwriter who agrees to purchase any stock that is not purchased by public investors in a rights offering.

Investing Essentials


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

Term of the Day

Central Limit Theorem

The Law of Large Numbers states that as a sample of independent, identically distributed random numbers approaches infinity, its probability density function approaches the normal distribution. See:... Read More

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