FIRM COMMITMENT Meaning and
Definition
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Firm commitment refers to a strong and unwavering dedication or pledge to a particular cause, belief, goal, or course of action. It denotes a resolute decision or agreement that is steadfast and unlikely to change. When someone has a firm commitment, they demonstrate a strong determination and commitment to follow through on their promises or obligations.
In business and financial contexts, a firm commitment refers to an agreement or arrangement made between a seller and a buyer, where the seller is obligated to sell a specific quantity of goods, services, or securities to the buyer at a predefined price and date. This commitment is legally binding and enforceable, ensuring that the seller cannot back out of the agreement without facing penalties or breach of contract.
Similarly, in investment banking, a firm commitment is a situation where an underwriter commits to purchasing all the shares of an initial public offering (IPO) or a new issue of securities at a predetermined price. This commitment guarantees the issuer the full proceeds from the offering, minimizing the risk for the issuer.
Overall, a firm commitment entails a strong and unyielding dedication to a particular cause or agreement, ensuring reliability and accountability in fulfilling obligations or pursuing goals. It encompasses perseverance, determination, and a mindset of keeping one's word and honoring agreements, whether in personal, professional, or financial spheres.
Common Misspellings for FIRM COMMITMENT
- dirm commitment
- cirm commitment
- virm commitment
- girm commitment
- tirm commitment
- rirm commitment
- furm commitment
- fjrm commitment
- fkrm commitment
- form commitment
- f9rm commitment
- f8rm commitment
- fiem commitment
- fidm commitment
- fifm commitment
- fitm commitment
- fi5m commitment
- fi4m commitment
- firn commitment
- firk commitment
Etymology of FIRM COMMITMENT
The word "firm" originates from the Latin word "firmus", meaning "strong" or "stable". The word "commitment" has its roots in the Latin word "committere", which means "to entrust" or "to pledge". When combined, the phrase "firm commitment" emphasizes a strong and unwavering pledge or promise.
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