Series 82: Exercise

Exercise

Match the following terms with the best relating statement.

1. A. All-or-none commitment
2. B. Best-efforts commitment
3. C. Firm commitment
4. D. Mini-max commitment
5. 1. _____ The underwriter commits to sell a minimum number of shares of the offering or the offering will be cancelled. The underwriter is expected only to use its best efforts to sell the remainder.
6. 2. _____ The underwriter agrees to purchase all the securities at a discount and then sell the securities to the public at a public offering price. The underwriter assumes all the risk of the offering, including the