Lewis Materials recently offered 15,000 shares of stock but only received payment for 12,500 shares since that was all the shares the underwriters could sell. What type of underwriting was this?

Question

Quizplus · Accepted Answer

This is a best efforts underwriting, where the underwriters try their best to sell all the shares offered, but are not committed to buying any unsold shares. In this case, they were only able to sell 12,500 shares.

Lewis Materials Recently Offered 15,000 Shares of Stock but Only