SIE Exam Practice Question 900

Question: 900

Which of the following is a type of best efforts underwriting that only becomes effective when a minimum amount of securities have been sold? Once the minimum requirement has been met, the underwriter may then sell securities up to a specified level under the terms of the offering.

Correct Answer: C

Explanation:

Mini-maxi underwriting is a type of best efforts underwriting that only becomes effective when a minimum amount of securities have been sold. Once the minimum requirement has been met, the underwriter may then sell securities up to a specified level under the terms of the offering.

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