In regards to the cost of issuing securities, underpricing for firm commitment offers is typically larger than for best efforts.

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Under a firm commitment offering, the underwriter guarantees the sale of securities at a set price, taking on more risk, which often results in larger underpricing to ensure the securities are attractive to investors. In contrast, a best efforts offering does not guarantee the sale or price, leading to potentially less underpricing as the underwriter assumes less risk.

In Regards to the Cost of Issuing Securities, Underpricing for Firm