© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Firm Commitment


When the underwriters involved in an IPO make a firm commitment, they're saying that they are responsible for any unsold shares.

They can't just say "Oops, we missed a few." Well, they can, but it's illegal.