Best Efforts Offering
From Open Risk Manual
Definition
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.
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
