In a best-efforts IPO, the underwriter guarantees that all stock will be sold.

Name: In a best-efforts IPO, the underwriter guarantees that all stock will be sold.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

In a best-efforts IPO, the underwriter is not obligated to guarantee that all stock will be sold, they are only responsible for using their best efforts to sell as much of the stock as possible. Therefore, there is no guarantee that all stock will be sold.

In a Best-Efforts IPO, the Underwriter Guarantees That All Stock