Exchange Currency

market out clause

Clause included in an underwriting agreement that protects the underwriter from paying any type of fee should he/she decide to cancel the agreement. A market out clause only eliminates the cancellation penalty if the cause for cancellation meets certain circumstances outlined in the agreement. If an underwriter chooses to cancel the contract for reasons that do not fall under those covered in the clause, a penalty may be assessed.

Related information about market out clause:
  1. Market Out Clause Definition | Investopedia
    A clause in an underwriting agreement allowing the underwriter to cancel the agreement for certain specified reasons without penalty.
     
  2. Market Out Clause - Financial Dictionary - The Free Dictionary
    A clause that may appear in an underwriting firm commitment that releases it from its purchase requirement if there are negative securities market developments.
     
  3. What is market out clause? definition and meaning
    Definition of market out clause: Clause included in an underwriting agreement that ... A market out clause only eliminates the cancellation penalty if the cause for ...
     
  4. Market Out Clause Definition & Example | InvestingAnswers
    We explain the definition of Market Out Clause, provide a clear example of how it works and explain why it's an important concept in business, finance ...
     
  5. Market Out Clause: Definition from Answers.com
    escape clause sometimes written into firm commitment underwriting agreements which essentially allows the underwrite rs to be released from their purchase.
     
  6. market out clause Definition | Business Dictionaries from ...
    market out clause. escape clause sometimes written into firm commitment underwriting agreements which essentially allows the underwriters to be released ...
     
  7. Market out Clause Law & Legal Definition
    Market out clause is a clause in an underwriting agreement allowing the underwriter to cancel the agreement for certain specified reasons without penalty.
     
  8. market-out clause - Invest Definition
    market-out clause definition: An addition to an underwriting agreement that permits the underwriters to opt out of their commitment to distribute securities in the ...