What type of securities distribution ensures the issuing corporation receives the full amount offered?

The firm commitment distribution type is designed to ensure that the issuing corporation receives the entire amount they are aiming to raise from the securities offering. In this arrangement, the underwriter or investment bank purchases the entire offering from the issuer at a set price and then takes on the responsibility of selling those securities to the public or investors. This means that the issuer gets their funds upfront, regardless of whether the underwriter is able to sell the securities or not, providing certainty and stability for the issuer's financial planning.

In contrast, the best-efforts agreement does not guarantee that the full amount will be raised as the underwriter commits only to do their best to sell as much of the offering as possible without the obligation to buy the remaining unsold securities. Private placements and public offerings have their own structures and regulations, but they do not inherently provide the same level of financial assurance to the issuing corporation as a firm commitment does.