best-efforts basis

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Best-Efforts Basis

An agreement between an underwriter and an issuer in which the underwriter agrees to place as much of an offering with investors as possible, but is not responsible for any portion of the offering it fails to sell. For example, suppose an issuer makes a new issue of 100,000 shares. The issuer may make a best effort basis agreement with an underwriting firm for the underwriter to sell those shares to investors. If the underwriting firm only sells 90,000, however, it is not required to buy the remaining 10,000 from the issuer. This reduces the risk to the underwriter; to reduce the risk to the issuer, most best efforts are all-or-none offerings.

best-efforts basis

1. An agreement by an investment banker to do its best to oversee but not guarantee the sale of a security issue in the primary market. See also underwriter.
2. An investor's market order to buy or sell a security in which the brokerage firm agrees to obtain the best possible price.
References in periodicals archive ?
Each new year provides an opportunity for us to put forth our very best effort to not only achieve the goals set for us, but perhaps, if we go that extra mile, to exceed expectations.
His best effort was a 37 in week 24 during the 341-332 success over Bridgend Street, while a week earlier he'd recorded 32 in the 294-276 loss to St Albans.
This information prepares participants for their second key step, using mental recall of best efforts.
Here a best effort of adherence to the spirit of the carryover basis rule would be shown.
Bertolini's best effort this year was in Dubai, when third to Caller One, again in the Dubai Golden Shaheen.
The rapid growth of best effort traffic on service provider networks is being driven, in large part, by the emergence of Web 2.
Idowu, after his thrilling success at the recent European Cup, had a best effort 17.
Central defender Andrew Thomas produced their best effort of the first half but his 38th minute header was cleared off the line and County substitute, Nick Harrhy looked the most threatening forward on the field after his second-half introduction.
The visitors' best effort came from just such a break after 17 minutes when Forster robbed Nick Daws in midfield and went on a 60 yard solo run before cracking a fierce shot against the crossbar.
Among the top 10, the best effort was turned in by Dale Earnhardt Jr.
Returning Masters Meet qualifier Dunn (119) improved to 28-3 with his third league title and Moorpark won a league-best five titles in its best effort of the year.
Best effort: The football team's best effort also produced its most disappointing setback.