When the investment banker sells the new securities on commission without guaranteeing the sale of the whole issue,the process is called:

Question

Quizplus · Accepted Answer

In a best effort offering, the investment banker agrees to sell the new securities on a commission basis but does not guarantee the sale of the entire issue. This means that the investment banker will make their best effort to sell as much of the issue as possible but is not obligated to purchase any unsold securities.

When the Investment Banker Sells the New Securities on Commission