Back Stop

Cammy's Kazoos says: "I want to go public. I want to sell a million shares at $20 per share." Cammy's finds Colson's Awful Underwriters, who says: "We will take you public, friend."

Colson's markets the shares to brokers and offers parts of the deal by July 26, 2019. The big date comes, and 900,000 shares are left. Oops...Colson's agreed to buy all unsold shares. That's a back stop.