Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
Which type of underwriting agreement is contingent on the underwriter's ability to sell shares to the public?
A firm commitment
A
A negotiated underwriting contract
B
A competitive bid arrangement
C
A best efforts arrangement
D
Explanations
In a best efforts arrangement, the deal is contingent upon the underwriter's ability to sell shares to the public.