When an investment banker agrees to sell as many shares as possible but does not purchase the shares from the company, this is called:

Question

Quizplus · Accepted Answer

This arrangement is known as a best efforts agreement, where the investment banker agrees to sell as many shares as possible on behalf of the company but does not commit to purchasing any unsold shares, thus not guaranteeing the total amount raised from the offering.

When an Investment Banker Agrees to Sell as Many Shares