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American Bankers Association CTFA Exam - Topic 10 Question 51 Discussion

Posted by Tonette on Aug 07, 2023 at 04:41 AM

A best efforts offering is sometimes used in connection with a of new, long-term securities.

Suggested Answer: D

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40 comments · newest first
GE
Gearldine 11 months ago
Definitely not for privileged subscriptions, though.
TY
Tyra 11 months ago
Wait, are you sure about that? Sounds off to me.
CH
Cherry 11 months ago
I thought they were only for public issues?
JO
Joni 11 months ago
Totally agree, that's how it usually works!
MA
Margot 12 months ago
Best efforts offerings are common in private placements.
WH
Whitley 12 months ago
I’m leaning towards private placement too, but I wonder if "all of the above" could also be correct in some contexts.
LA
Lashandra 12 months ago
I feel like "privileged subscription" might be the answer, but it sounds less common than the others.
SA
Samira 1 year ago
I remember practicing a question about public issues and best efforts, but I can't recall the specifics.
SH
Sharika 1 year ago
I think a best efforts offering is usually associated with private placements, but I'm not entirely sure.
JO
Johanna 1 year ago
This is a tricky one. I can see the logic behind both options B and C. The question does mention the environment, so that could be a factor. But the core requirement is about restricting access based on the resource and HTTP method, so I think option C, resource and action, is the way to go.
JO
Joanna 1 year ago
I'm a bit confused here. I know there are commands to manage disks, but I'm not familiar with all the specific Veritas commands. I'll have to review my notes.
PO
Pok 1 year ago
Okay, let me review the options and see if I can eliminate any of the choices.
TO
Tomas 1 year ago
Okay, I think I know how I'd handle this. First, I'd consult a mentor or another planner not involved to get a second opinion on my analysis. Then I'd go to my supervisor armed with the facts and my concerns. Hopefully they'll see reason, but if not, I may need to consider escalating it.
CH
Chan 1 year ago
A best efforts offering? Sounds like something I do when I'm trying to hit the gym every day. 'Best efforts' and 'consistent results' don't exactly go hand-in-hand.
DE
Detra 1 year ago
↳ replying to Chan
It's like giving it your all, but with no guarantee of success.
AN
An 1 year ago
↳ replying to Chan
It involves the underwriter making their 'best efforts' to sell the securities.
KE
Kenneth 1 year ago
↳ replying to Chan
It is sometimes used in connection with a private placement.
LA
Larae 1 year ago
↳ replying to Chan
A best efforts offering is a type of securities offering.
AN
Antonio 1 year ago
I'd better not offer my best efforts on this exam, or I might end up with a 'best' result of a big, fat 'F'.
CH
Charolette 1 year ago
↳ replying to Antonio
C) Public issue
AL
Alise 1 year ago
↳ replying to Antonio
B) Privileged subscription
HA
Haydee 1 year ago
↳ replying to Antonio
A) Private placement
YU
Yun 1 year ago
Hmm, I'm going to have to go with private placement on this one. Best efforts offerings and public issues just don't seem to fit together.
EL
Elinore 1 year ago
↳ replying to Yun
Yeah, public issue doesn't really fit the concept of best efforts offering. Private placement seems like the most suitable choice.
CU
Curtis 1 year ago
↳ replying to Yun
I think privileged subscription could also be a possibility, but private placement does make more sense.
LE
Lenna 1 year ago
↳ replying to Yun
I agree, private placement does seem like the best option for a best efforts offering.
AL
Alecia 1 year ago
All of the above? Really? I doubt that's the right choice here. A best efforts offering is a pretty specific concept.
LE
Leila 1 year ago
↳ replying to Alecia
I agree, I'll go with A) Private placement as well.
VI
Virgina 1 year ago
↳ replying to Alecia
I think it's A) Private placement. That seems more specific to a best efforts offering.
WI
Wilburn 1 year ago
↳ replying to Alecia
D) All of the above
BA
Barrett 1 year ago
↳ replying to Alecia
C) Public issue
MA
Marshall 1 year ago
↳ replying to Alecia
B) Privileged subscription
CY
Cyril 1 year ago
↳ replying to Alecia
A) Private placement
JO
Joaquin 1 year ago
I agree, a private placement is the correct answer. Public issues typically have a more formal underwriting process, not a best efforts offering.
RO
Romana 1 year ago
A private placement seems like the most fitting answer here. Best efforts offerings are usually associated with private placements, not public issues.
DO
Donte 1 year ago
↳ replying to Romana
Yes, best efforts offerings are typically associated with private placements rather than public issues.
CO
Colette 1 year ago
↳ replying to Romana
I agree, a private placement is often used in best efforts offerings.
DO
Dorinda 1 year ago
I'm not sure, but I think it could also be D) All of the above because best efforts offering can be used in different types of securities offerings.
HE
Hershel 2 years ago
I agree with Alba, I also think it's A) Private placement.
AL
Alba 2 years ago
I think the answer is A) Private placement.
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