Final answer:
In a best efforts underwriting, the underwriters attempt to sell as much as possible but return any unsold shares to the issuer, much like a money-back guarantee in the goods market.
Step-by-step explanation:
The type of offering being described in the question is known as a best efforts underwriting. In a best efforts underwriting, the underwriters agree to sell as much of the offering as possible at the agreed-upon price, but the issuing corporation retains the risk of the offering not being fully subscribed. This means that any unsold shares are returned to the issuer. This is similar in spirit to companies in the goods market offering a money-back guarantee, which functions as a form of collateral or insurance against unforeseen, detrimental events, and a promise of quality to encourage sales.
The best efforts underwriting contrasts with other types such as a firm commitment underwriting (the underwriter buys the entire issue and resells it to the public), an all-or-none underwriting (the offering must be fully subscribed before any sales are finalized), and a contingency offering (various other conditions must be met for the offering to go forward).