When underwriters issue securities on a best efforts basis,they:

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When underwriters issue securities on a best efforts basis, they make their best effort to sell as much of the stock as possible, but there is no guarantee that the entire issue will be sold. Underwriters do not buy the entire issue from the firm or guarantee the issuer will be charged the minimum spread. They also do not submit a bid for purchase, as in an auction process.

When Underwriters Issue Securities on a Best Efforts Basis,they