USA
firm commitment underwriting. Also known as firm commitment offering.
As opposed to a best efforts offering, in the context of securities and capital markets, an underwriting where the underwriters commit to purchase all of the securities being offered by the company at a negotiated discount regardless of whether investors purchase the securities. Any securities not resold to the public are paid for and held by the underwriters for their own account.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.