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Select all that applyIdentify all of the methods of distribution wherein an investment dealer does not assume the risk of distribution.Multiple select question.security underwritingdirect methodbest effortscommission basis

Question

Select all that applyIdentify all of the methods of distribution wherein an investment dealer does not assume the risk of distribution.Multiple select question.security underwritingdirect methodbest effortscommission basis

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Solution

The methods of distribution wherein an investment dealer does not assume the risk of distribution are:

  1. Direct method
  2. Best efforts
  3. Commission basis

In these methods, the dealer acts as an agent rather than a principal, meaning they do not take on the risk of buying the securities themselves and then reselling them to the public. Instead, they help the issuer sell the securities directly to the public (direct method), put in their best efforts to sell as many securities as possible without guaranteeing the sale of all securities (best efforts), or sell the securities on a commission basis, earning a fee for each security sold.

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