Which of the following is a security issue in which the underwriter does not guarantee a firm price to the issuer and acts more as a placing or distribution agent for a fee?
A) best efforts underwriting
B) firm commitment underwriting
C) underwriter's spread
D) venture capital

Question

Quizplus · Accepted Answer

Best efforts underwriting is a security issue in which the underwriter does not guarantee a firm price to the issuer and acts more as a placing or distribution agent for a fee. In this type of underwriting, the underwriter agrees to use their best efforts to sell the securities but is not obligated to purchase any unsold shares. The risk of selling the securities lies solely with the issuer.

Which of the Following Is a Security Issue in Which