In best efforts offering, price offered by investment banks is originally set by
A. municipality
B. insurance companies
C. negotiable transactions
D. global placement
Answer: Option A
Solution(By Examveda Team)
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.Related Questions on International Finance and Treasury
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B. International bank for Reconstruction and Development
C. International Financial Corporation
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