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.

Question

Quizplus · Accepted Answer

In a best efforts offering, the underwriter agrees to sell as many shares as possible, but the issuer might not sell all the shares. If RVS only received payment for 79,500 out of 100,000 shares, it indicates a best efforts offering where not all shares were sold.

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