HopefullyInLawSchool
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LSDefine
Simple English definitions for legal terms
mini-maxi
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A quick definition of mini-maxi:
Mini-Maxi: A way of selling securities where the broker has to sell a certain minimum amount of securities all at once, and then sell the rest as best as they can. It's like a challenge for the broker to sell as many securities as possible, but they have to sell at least a certain amount.
A more thorough explanation:
Definition: Mini-maxi is an underwriting arrangement for a securities transaction. In this arrangement, a broker is required to sell the minimum number of securities on an all-or-none basis and the balance on a best-efforts basis.
Example: Let's say a company wants to issue 100,000 shares of stock. The underwriter agrees to sell at least 50,000 shares on an all-or-none basis, meaning they will only sell the shares if they can sell all 50,000. The remaining 50,000 shares will be sold on a best-efforts basis, meaning the underwriter will try their best to sell them, but they are not required to sell them all.
This example illustrates the mini-maxi underwriting arrangement, where the underwriter is required to sell a minimum number of shares on an all-or-none basis and the rest on a best-efforts basis.