If the offer price is set too high, the issuing company will lose under a best-efforts agreement.

Name: If the offer price is set too high, the issuing company will lose under a best-efforts agreement.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Under a best-efforts agreement, the underwriter is not obligated to purchase any unsold shares, so if the offer price is set too high and there is insufficient demand for the shares, the issuing company will not be able to sell all the shares and will have to absorb the unsold shares themselves.

If the Offer Price Is Set Too High, the Issuing