Best Efforts Offerings

C

The correct answer is C. Public issue.

A best efforts offering is a type of underwriting agreement in which the underwriter agrees to use its best efforts to sell as much of a new issue of securities as possible, but does not guarantee that all of the securities will be sold. This type of offering is often used for new, long-term securities that may be difficult to sell in a short period of time.

In a best efforts offering, the underwriter acts as an agent for the issuer and receives a commission based on the amount of securities sold. The underwriter does not buy the securities from the issuer and therefore does not take on the risk of owning unsold securities.

A private placement is a sale of securities to a limited number of investors, typically institutions or high net worth individuals, without a public offering. A best efforts offering would not typically be used in a private placement, as the securities are not being offered to the general public.

A privileged subscription is a type of offering in which existing shareholders are given the opportunity to purchase additional securities before they are offered to the general public. A best efforts offering would not typically be used in a privileged subscription, as the securities are being offered to existing shareholders rather than the general public.

A public issue is a sale of securities to the general public through a registration statement filed with the SEC. A best efforts offering is commonly used in connection with a public issue, as it allows the underwriter to use its best efforts to sell as much of the new issue of securities as possible, while still allowing for some flexibility if the market conditions are not favorable.

In conclusion, a best efforts offering is sometimes used in connection with a public issue of new, long-term securities.