Also known as best efforts offering. In a best efforts underwriting, the underwriters do not agree to purchase all of the securities from the issuer. Underwriters agree to use their best efforts to sell the securities and act only as an agent of the issuer in marketing the securities to investors. The underwriters purchase from the issuer only those securities that its clients have agreed to buy. See also firm commitment underwriting.

For more information on the underwriting process, see Practice Note, Underwriting Registered Offerings: Overview.