In underwriting, best efforts refers to an investment bank's assurance that they will work to sell as much of an offering to the public as possible. But 'best efforts' does not guarantee that the underwriter will be able to all securities.. |
Best Efforts is essentially a protection for underwriters: so long as they use all their efforts to sell an issuance, they are not responsible for unsold inventory. Best efforts clauses are common with more risky offerings, where full assimilation is not assured.
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