Which of the Following Statements Regarding Private Placements Is FALSE

question 33

Multiple Choice

Which of the following statements regarding private placements is FALSE?

• A)A private placement is a bond issue that does not trade on a public market but rather is sold to a small group of investors.
• B)Privately placed debt need not conform to the same standards as public debt;as a consequence,it can be tailored to the particular situation.
• C)In 1990,the U.S.Securities and Exchange Commission (SEC)issued Rule 144A,which significantly decreased the liquidity of certain privately placed debt.
• D)Because a private placement does not need to be registered,it is less costly to issue.

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Definitions:

Preoperational

A stage in Piaget's theory of cognitive development where children between ages 2 and 7 begin to engage in symbolic play but lack the ability of operational thought.

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children gain the abilities of conservation (understanding that quantities remain the same despite changes in shape or appearance) and logical thought about physical objects and their properties.

Assimilation

A cognitive process in Piaget's theory where individuals integrate new information into preexisting knowledge frameworks.

Mental Structures

Conceptual frameworks or cognitive constructs that are used to organize and interpret experiences and information.