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assume a firm issued securities through an agreement where the investment bankers sold as many shares...

assume a firm issued securities through an agreement where the investment bankers sold as many shares as possible at a fixed price. this issue would be classified as a:
-dutch auction
-direct rights offer
-direct placement
-best-efforts cash offer
standby rights offer

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Answer #1

This would be classified as a best efforts cash offer. It's a legal agreement between the issuing company and the investment banker whereby ther investment banking firm sold as many shares as possible at a fixed price to the general public.

So , the correct opption is option 4.

Direct placement and direct rights offer does not hire any this rd party ,they directly sell their shares to the public. This helps them to avoid restrictions of the banks and the venture capitalists.

In a Dutch auction, the highest price is offered and then reduced until and unless a final buyer is found.

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