Also known as firm commitment offering. As opposed to a best efforts underwriting, in the context of securities and capital markets, an offering where the underwriters (in an offering registered with the SEC) or the initial purchasers (in a private placement) commit to purchase all of the securities being offered by the company and/or the selling securityholders 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 or initial purchasers for their own account.

For more information, see Comparative Analysis of Methods of Accessing the Equity Capital Markets: Chart.