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 ?
The rapid growth of best effort traffic on service provider networks is being driven, in large part, by the emergence of Web 2.
The Greek and Slovakian jumpers, whose best efforts were 17.
A bumpy pitch prevented the best efforts of both sides to play any constructive football though County shaded a dour encounter.
But Rotherham's best effort - a Warne long-range header over a crowded goalmouth with Hahnemann off his line - was denied by a brilliant saving header from Mackie who raced back to head clear from under the bar.
Under the terms of the agency agreement with First Marathon Securities Limited OCS will agree to make its best efforts to file a prospectus in each qualifying jurisdiction as expeditiously as possible.
The Cal State Northridge freshman got her chance Saturday and gave her best effort of the season against visiting San Diego State in a 71-52 nonconference victory, the Matadors' first of the year.
The Company has signed engagement letters with two Canadian underwriters to act as co-placement agents on a best efforts basis in connection with a proposed syndicated private placement of the Company's securities to non-US residents for gross proceeds of up to US$6,000,000 (the "Canadian Offering"), with an over-allotment option of up to 15% of the number of units offered at closing.
But Los Angeles was not on the list despite the city's best efforts, said David Eder, enterprise community and empowerment zone program coordinator for the city.
In conjunction with this, Africo will undertake, on a best efforts basis, to raise sufficient funds to allow it to commence development of the Kalukundi deposit, pursuant to and contingent upon, completion of a bankable feasibility study, which is due for completion before the end of April, 2006.
The private placement will consist of up to 1,500,000 "flow-through" common shares of Exall (the "Flow-Through Shares") offered on a best efforts basis at a price of $2.
OTCBB:URIX) announced that it has engaged a placement agent to make a best efforts placement of $10 million in value of shares of its Common Stock to selected accredited investors.