A best efforts offering is a less common type of IPO issued by a financially weaker, small, or otherwise risky firm. The investment bank agrees to assist in the marketing of the firm’s shares using its best effort and skill but only to sell the shares on a commission basis. The bank buys none of the stock and risks none of its own money. Thus, in a best efforts offering, the issuer bears the risk of price fluctuations or low market demand. If all the shares in a best efforts offering cannot be sold, the issuer may cancel the offering and return all the funds it receives to investors. Investors should view best efforts offerings with caution. If the knowledgeable investment bank is not willing to risk money to underwrite the firm, why should the investor risk money on the shares.