A type of offering where the issuing corporation is guaranteed to receive the full amount while the underwriter retains any unsold shares is known as what?

In a firm commitment offering, the issuing corporation sells the entire offering to the underwriter, who then takes on the responsibility of selling the shares to the public. This arrangement means that the issuing corporation is guaranteed to receive the full amount they are seeking, regardless of how many shares the underwriter is able to sell. If the underwriter doesn't sell all of the shares, they bear the risk and retain the unsold shares. This structure allows the issuing corporation to be assured of funding without worrying about the potential for unsold shares affecting their capital raise.

In contrast, a best efforts offering does not provide the same guarantee to the issuer. In this scenario, the underwriter agrees to sell as many shares as possible but does not guarantee a specific amount of capital or take on the risk of unsold shares. Public offerings and private placements describe different methods of selling securities but do not specifically pertain to the risk-sharing structure between the issuer and underwriter.