If RVS offered 100,000 shares of stock in its IPO but only received payment for 79,500 shares, the ﬁrm most likely had a _____ offering.

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Quizplus · Accepted Answer

In a "best efforts" offering, the underwriter does not guarantee the sale of all the shares. Instead, they agree to sell as many shares as possible, which explains why RVS only received payment for 79,500 out of 100,000 shares.

If RVS Offered 100,000 Shares of Stock in Its IPO