If an investment banker makes a best efforts agreement to sell 1,200,000 shares at $10 a share, the investment banker must sell at least 200,000 shares.

Question

Quizplus · Accepted Answer

A best efforts agreement does not guarantee the sale of any specific number of shares. The investment banker will use their best efforts to sell as many shares as possible at the stated price, but there is no minimum amount that must be sold.

If an Investment Banker Makes a Best Efforts Agreement to Sell