Almost all firms that go public enlist the help of an investment bank that specializes in helping firms issue new securities. Under a best efforts approach, the investment bank:
A. provides advice about pricing and marketing the securities and assists in finding potential buyers.
B. itself purchasesallof the shares of the firm at a specified price.
C. does not earn a commission on any of the shares sold.
D. guarantees that the firm will sell all of its securities at a high enough price to meet its financial goals.
Answer: A
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