With a best effort offering,the investment banker performs all of the following roles except: A) determines the fee paid to themselves for handling the issue. B) manages the selling group for the new issue. C) evaluates market conditions and determines the characteristics of the security. D) guarantees the selling price for the entire issue to the firm issuing the securities. E) All of the above are true.

Question

Quizplus · Accepted Answer

With a best effort offering, the investment banker does not guarantee the selling price for the entire issue to the firm issuing the securities. Instead, they make their best effort to sell the securities at the highest possible price, but the issuer assumes the risk of any unsold securities. The investment banker still performs the other roles listed in the question.

With a Best Effort Offering,the Investment Banker Performs All of the Following