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A Best Efforts Offering Is One in Which

Question 25

Multiple Choice

A best efforts offering is one in which


A) the underwriter bears the risk of an unsuccessful offering.
B) the bid-ask spread is exceptionally high,but the investment banker does his best to sell the issue anyway.
C) the investment banker acts as a principal for the issuer.
D) the investment banker acts only as a distribution agent.
E) the issue can only be privately placed.

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