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 ?
ASEAN countries are also expected to pledge, on a best-efforts basis, to commit more product areas for tariff cuts to zero to 5% by the year 2000 under the ASEAN Free Trade Area's (AFTA) Common Effective Preferential Tariff (CEPT) scheme, despite calls to slow the pace of liberalization to help local industries struggling amid economic crisis, senior Philippine officials said.
Based on the census and socio-economic survey activities carried out over the winter period 2013/2014 the Consultant should, on a best-efforts basis, provide the opportunity for all of the affected people to be engaged in this Assignment and to benefit from the Plan.
The offering will be made only to accredited investors on a best-efforts basis through its exclusive placement agent, Sterne, Agee & Leach Inc.
EBRD Finance: A Syndicated MSME Loan to Belgazprombank in Belarus in the aggregate amount of up to EUR 40 million, of which the EBRD s portion (A loan) will be up to EUR 10 million and the remaining (B loan) will be syndicated on a best-efforts basis to interested financial institution(s).
The stock was sold on a best-efforts basis and the proceeds will be used in support of the company's feasibility study, its district exploration programme at the Yandera copper-molybdenum-gold deposit in Papua New Guinea and for permission and other pre-construction costs associated with the project.
While Peak s Chinese partner, LongKey Hong Kong Limited ( LongKey ), winds up its distribution agreement negotiations with one of China s largest mobile operators, Essence and Peak will now collaborate, on a best-efforts basis in accordance with the terms of their agreement, to close the financing in the shortest possible delay.
The company sold the units at a price of CAD0.05 each on a best-efforts basis in a private placement.