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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
For the first terminal, SSGC has a contractual re-gasification capacity of 630 MMCFD with a peak capacity of 690MMCFD on best effort basis as and when required.
Another tranche of Rs100 billion may be arranged from the Islamic banking industry as 'Green Shoe Option' (in the best effort basis).
Currencies such as Tether and TrueUSD are backed by fiat currencies to better manage the risk of high price volatility and preserve investors' equity on a best effort basis. While other currencies such as Pecunio and Goldmint have utilised gold reserves to mitigate high price volatility.
In addition, in coordination with BCEAO, ICD at best effort basis, will attract other investors in order to increase the size of the fund up to $100 million.
According to insiders the consultant is continuously ignoring completion dates and allows the contractor to work on 'best effort basis', instead of pursuing time limits.
On how fast Japan can ratify the agreement, Kawamura said it is on a best effort basis because the apprehensions of domestic industries are understandable since the full text of the agreement was only made public recently.
The bank will evaluate the needs of customers and develop appropriate financing packages including product structuring down payment, tenure of loan, and effective rate of interest on best effort basis. This would be subject to prevailing market conditions and in conformity with the lending norms.
The agriculturalists approach us with their need and we accommodate with the financing need on best effort basis.
The project would be subject to any additional 5 MMCFD pipeline quality gas from SSGCs system to be for 15 years starting from January 2012 and thereafter on best effort basis, signing of Gas Sales Agreement between Project Sponsor and SSGC within six months of gas allocation or any other time specified by the Ministry of Petroleum & Natural Resources failing which, the allocation shall become null and void.
However, the limitation of the role of companies to a best effort basis raises doubts about the effectiveness of the legislative initiative.

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