An agreement for the sale of securities in which the investment bank handling the transaction gives no guarantee that the securities will be sold is a(n) .

Question

Quizplus · Accepted Answer

A best efforts arrangement is one where the investment bank handling the transaction makes no guarantee that the securities will be sold. The bank is simply using its best efforts to sell the securities on behalf of the issuer. In contrast, a guaranteed issue arrangement is one where the investment bank guarantees that the securities will be sold, while an underwritten arrangement is one where the investment bank buys the securities from the issuer and then sells them to investors. A private placement is a sale of securities that is not registered with the Securities and Exchange Commission and is offered only to a limited number of investors.

An Agreement for the Sale of Securities in Which the Investment