In best efforts offering, price offered by investment banks is originally set by

In best efforts offering, price offered by investment banks is originally set by municipality. Best efforts is a contractual term in which an underwriter promises to make their best effort to sell as much of a securities offering (e.g., IPO) as possible. Best-effort agreements are used mainly for securities in a less-than-ideal market condition or with higher risk, such as an unseasoned offering.