Which of the following statements is most CORRECT? Answer In a private placement, securities are sold to private (individual) investors rather than to institutions. Private placements occur most frequently with stocks, but bonds can also be sold in a private placement. Private placements are convenient for issuers, but the convenience is offset by higher flotation costs. The SEC requires that all private placements be handled by a registered investment banker. Private placements can generally bring in funds faster than is the case with public offerings.
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