Series 79 practice questionmediumUnderwriting Agreements
What distinguishes an all-or-none underwriting from a standard best efforts underwriting?
- AIn all-or-none, the underwriter guarantees to sell every share
- BIn all-or-none, only institutional investors may participate
- CIn all-or-none, the issuer must accept any price the market determines
- DCancel the offering and return funds unless all securities are sold✓ Correct answer
Explanation
Why D — Cancel the offering and return funds unless all securities are sold
All-or-none requires sale of the entire offering. A specified minimum below the maximum describes a minimum/maximum or mini-maxi contingency.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Underwriting & New Financing questions
- A mini-maxi offering has a minimum of $15 million and a maximum of $30 million. After the offering period, $22 million…
- A small company is conducting a $10 million IPO under a best efforts underwriting arrangement. The underwriter sells…
- What is the 'underwriting spread'?
- In a firm commitment underwriting, who bears the risk of unsold shares?
- An underwriting agreement contains a 'market out' clause. Under which circumstance would this clause most likely be…
- Under Rule 430A, what information may be omitted from a prospectus filed as part of the registration statement?
- Which component of the underwriting spread is paid to broker-dealers who sell shares to their retail clients but are…
- What is a 'prospectus supplement' used for in connection with a shelf registration?