Best Efforts Offering

From Open Risk Manual


Best Efforts Offering. A securities offering that is sold on a best efforts, rather than firm commitment, basis, whereby investment bankers commit to doing their best to sell the securities offered, but do not assume the full risk of an underwriter

In a best efforts offering, the agreement is strictly an agency arrangement, with no obligation on the part of the agent to purchase the securities. They act as a broker, in other words.

See Also

  • Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014.


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