Firm commitment offering

In a firm commitment offering the underwriters agree to buy the whole issue from the seller and resell it, taking the risk that it will not all sell. Rule 105 applies only to offerings conducted on this basis.

manipulation techniques · updated 2026-09-20

Where does firm commitment offering come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Rule 105 offering shorts — Rule 105 offering shorts are short sales of a stock in the restricted period before a follow-on offering is priced, followed by a purchase of that stock in the offering, which Regulation M Rule 105 prohibits whatever the trader intended.

Enforcement actions involving these techniques

See also

• Follow-on offering — A follow-on offering is a later sale of new or existing shares by a company that is already publicly traded. It is usually priced …
• Rule 105 — Rule 105 of Regulation M, 17 C.F.R. § 242.105, makes it unlawful to sell a stock short in a defined restricted period before a reg…

Terms that refer here

Follow-on offering

Back to the full glossary — 261 defined terms.