Large well-established investment bankers often distribute new issues on a best-efforts basis.
A "best efforts" approach is most commonly used by smaller investment banking concerns.

Question

Quizplus · Accepted Answer

The statement is false. Best efforts approach is most commonly used by larger investment banking concerns with established distribution networks. Smaller investment banking concerns may not have the resources or investor networks to guarantee the success of a new issue.

Large Well-Established Investment Bankers Often Distribute New Issues on a Best-Efforts