A firm commitment by an underwriter (investment bank) to buy, at a fixed price, all of the shares offered by a company at an initial public offering (IPO), for their house account, regardless of whether there are ultimate buyers or not. In turn the underwriter will sell the shares to its clients and the broader market. A bought deal transaction is the subject of a hard underwriting by one or a group of investment banks. IPOs are typically not structured as bought deals, although some transactions (particularly block trades) sometimes are. In general, bought deals are commonplace in IPOs of bonds.