Eastman Corp. is working with an investment bank to issue some new stock. The bank has agreed to help the company develop a pricing strategy and to help find buyers for the stock, but it will not guarantee that all shares will be sold at the desired price. Eastman's investment bank is using the _____ approach to raise funds.

Question

Quizplus · Accepted Answer

The best efforts approach is where the investment bank helps the company develop a pricing strategy and find buyers for the stock, but it does not guarantee that all shares will be sold at the desired price.