Meaning COMMITMENT FEE: A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced. Often used in risk arbitrage. Payment to institutional investors in the U.K. (pension funds and life insurance companies) by the lead underwriter of a takeover that takes place when the underwriter provides the target company's shareholders with a cash alternative for a target company's shares in exchange for the bidding companies' shares. The payment is typically 0.5% for the first 30 days, 1.25% for each week thereafter, and a final 0.75% acceptance payment when the takeover is completed
More terms such as Commitment fee in Dictionary C.
- Definition Come In:
- Examples In the context of general equities, a fall in price commitment fee definition.
- Definition Collection Ratio:
- Examples The ratio of a company's accounts receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash commitment fee explain.
- Definition Closed-End Fund:
- Examples company that sells shareslike any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net commitment fee what is.
- Definition Commodity Indexs:
- Examples Indexs measuring the price and performance of physical commodities, often by the price of futures contracts for the commodities that are listed on commodity exchanges commitment fee meaning.
- Definition Cooperative:
- Examples owned by its members. Examples are agriculture cooperatives that assist farmers in selling their products more efficiently and apartment buildings owned by the residents who have full control of the commitment fee abbreviation.
