Which of the Following Is True of Private Placement of Securities

question 120

Multiple Choice

Which of the following is true of private placement of securities?

• A)Securities are placed with few large institutional investors.
• B)Securities of private firms are sold to the investing public at lower prices.
• C)The securities must be registered with the SEC.
• D)Public trading in these securities is not allowed.
• E)Subject to more stringent disclosure and informational requirements than those imposed by the SEC on publicly registered issues.

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Definitions:

Criteria For Validity

The standards or benchmarks that must be met to determine the accuracy, reliability, and legitimacy of a study, research findings, or argument.

External

Originating from or situated outside of something or someone, often influencing or affecting it from the outside.

Operationalization

The process of defining a fuzzy concept so as to make the concept measurable and to understand it in terms of empirical observations.