What does an "all or none" offering imply for an underwriting syndicate?

An "all or none" offering means that the entire issue must be sold for the transaction to be completed. This type of offering implies that if the underwriting syndicate does not sell the total amount of securities available, then none of the securities will be sold, and the funds will not be released. Instead, the proceeds from the sale are typically placed in escrow until the syndicate either sells all the shares or the offering period ends. This ensures that investors are not left with partially fulfilled transactions, which could affect their confidence and investment strategy.

In this context, the correct answer highlights the critical function of escrow in managing these funds, emphasizing that the sale must either be fully completed or not occur at all. This structure is meant to protect both investors and the issuing entity by ensuring clarity in the fulfillment of the transaction.