Question

An agreement for the sale of securities in which the investment bank handling the transaction gives no assurance that the entire issue will be sold is called a(n) _____.

Answer 1

Answer:

best efforts arrangement

Explanation:

Best efforts can be regarded as agreement which is been entered by a service provider so that they can perform any action required to fulfill the requirements of a contract. As regards to finance,best efforts are been made by underwriter to the issuer, so that much of their securities offering can be sold as much as possible. It should be noted that An agreement for the sale of securities in which the investment bank handling the transaction gives no assurance that the entire issue will be sold is called best efforts arrangement