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1. A non-binding letter written by an investment bank stating that the investment bank is highly confident that it can sell a certain type of security of an issuer in the marketplace. Its value is based on the reputation of the investment bank. Presumably the investment bank would not put its reputation at risk unless it truly believed it could sell the subject securities. Often a highly confident letter is obtained by a potential buyer of a company to indicate to the seller that it will have the financing necessary to consumate an acquisition.

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