All or none and standby are types of what financial process?

All or none and standby are types of underwriting processes involved in the issuance of securities. Underwriting refers to the method by which an investment bank or financial institution guarantees the purchase of a new issue of securities, assuming the risk of buying them from the issuer and then selling them to investors.

In the all or none underwriting process, the underwriter agrees to purchase the entire offering of securities or none at all. This arrangement is typically used when the issuer wants to ensure that either the full amount of the offering is sold or it won’t go through at all, thus protecting the company’s capital structure.

On the other hand, standby underwriting involves the underwriter agreeing to purchase any remaining shares after a rights offering. This provides assurance to the issuer that all shares will be sold, as the underwriter stands ready to buy any that the existing shareholders do not purchase.

These processes are essential in facilitating the capital raising process for issuers and ensuring that they get the funds they require while managing the risks associated with selling new securities.