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

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.