Firm Order

Finance allah shmoop What are a firm deal Ah firm

commit and a firm quote No a lot of firms

here is by agra involved in this one No Well

okay people Yes You knew we were going to go

there We'll start with firm commit Well the whole notion

of a firm commit applies on a few fronts Like

if a lender is lending dough Well usually there is

a contractual agreement cleverly called a firm commitment letter and

it derives a firm deal like the deal will follow

that commitment And that letter specifies the amount of money

the lender is willing to lend at a given interest

rate With all the terms you know spelled out for

given time like this offer is good for thirty days

or until june first Or until the where wolf grows

What they crow Don't they Okay howl whatever In an

ai po when a bank is selling shares on behalf

of a company issuing them a firm commit gives rise

to a firm deal And it basically says that the

bank is responsible for selling any unsold shares That is

It's called a quote bought deal unquote And the bank

Either sells those aipo shares to investors or well they

buy them for their own account In a firm quote

the commitment involved usually refers to a broker dealers bid

ask spread in selling those shares like she holds a

few million shares of amazon in inventory and publishes to

her constituency that she is firm as a buyer at

eleven hundred two and twenty and a seller at eleven

hundred eight and fifty Got it sets one one zero

two point two zero in a cellar at one one

zero eight point five oh yeah that's how it would

look well if anyone matches those numbers then she is

legally obligated to sell them And just in case someone

wants to buy a good gillian shares i am or

than she carries in inventory well there's usually a limit

number attached to her offer for like i stand firm

on one hundred thousand at this price like a hundred

thousand shares and not a hundred thousand won something like

that anyway so firm think obligated confirmed contracted for legally

binding and sometimes yeah that'll give you cramps Just try 00:02:17.1 --> [endTime] prunes