Exercise
Match the following terms with the best relating statement.
A. All-or-none commitment
B. Best-efforts commitment
C. Firm commitment
D. Mini-max commitment
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.
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, incl