In a "best-efforts" basis

Question

Quizplus · Accepted Answer

"Best-efforts" means that the investment banker is not obligated to sell all of the shares of the company's stock, but rather agrees to use their best efforts to help the firm sell the stock at a favorable price. This means that the investment banker will not purchase the stock from the company and resell it, as in option A, but instead will try to find buyers for the stock on behalf of the company. Option C is partially correct, as the investment banker will be looking for the best marketing strategy, but this alone does not encompass the full meaning of "best-efforts." Option D includes both B and C but also includes option A, which is incorrect. Therefore, the best answer is B.

In a "Best-Efforts" Basis