Underwriting where the syndicate buys the entire issue from the issuing firm, assuming full financial responsibility for any unsold shares, is called a _____________ offering.

A) Best efforts.
B) Shelf.
C) Direct rights.
D) Private placement.
E) Firm commitment.

Firm Commitment

A guarantee given by an underwriter to purchase all the unsold shares in an initial public offering or a secondary offering.

Financial Responsibility

The ability to manage one's financial resources wisely, including saving, investing, and spending in a manner that ensures long-term financial stability.

Syndicate Buys

Refers to a group of investors or underwriters pooling together to buy the entire or a large portion of a new securities issue for resale.