Series 82: Exercise

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, includ