The issuance of securities in which investment bank does not guarantee back up price and act as distributor, in planning of issue is considered as ____________?
Correct answer: A. best efforts offering
- A. best efforts offering
- B. least good index
- C. least good premium
- D. least good discount price
Explanation
Under a best-efforts offering, the investment bank acts as the issuer’s distributor without guaranteeing that the issue will be sold or supporting its price. This differs from firm underwriting, where the bank guarantees purchase of the issue.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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