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Simple English definitions for legal terms

best-efforts underwriting

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A quick definition of best-efforts underwriting:

Best-efforts underwriting is when an investment banker helps a company sell their stocks to the public, but they don't guarantee that all the stocks will be sold. The investment banker acts as an agent for the company and tries their best to sell as many stocks as possible. If there are any unsold stocks, they are not issued. This is different from firm-commitment underwriting, where the investment banker agrees to buy all the stocks and is financially responsible for any unsold stocks. Standby underwriting is another type of underwriting where the investment banker agrees to buy any unsold stocks after the public offering for a fee.

A more thorough explanation:

Best-efforts underwriting is a type of underwriting where an investment banker agrees to help sell a new issue of securities to the public, but does not guarantee the sale of all the securities. The underwriter acts as an agent for the issuer and any unsold securities are not issued.

  • An investment bank agrees to help sell a new issue of stocks for a company. The bank will use its best efforts to sell the stocks to the public, but does not guarantee that all the stocks will be sold.
  • A municipality wants to issue bonds to finance a new project. An investment bank agrees to help sell the bonds to investors, but does not guarantee that all the bonds will be sold.

These examples illustrate how an investment bank can help an issuer sell securities to the public through best-efforts underwriting. The investment bank will use its expertise and resources to market and sell the securities, but the success of the sale ultimately depends on market conditions and investor demand.

best-efforts contract | best embodiment

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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