Which of the Following Is the Main Reason for Private

question 104

Multiple Choice

Which of the following is the main reason for private placements being less expensive than public offerings?

• A) In a private placement, the requirement for hiring an expensive investment bank to trade the stocks on behalf of the company is not mandatory.
• B) In private placements, issuers of stocks can quote a high price to the limited number of investors and get high returns.
• C) Private placements takes place within a firm itself, thereby avoiding expenditures on resources.
• D) Privately placed securities are exempt from the requirement to register with the Securities and Exchange Commission.

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Definitions:

Karvonen Technique

A method to calculate the target heart rate for physical exercise based on the individual's resting heart rate and maximum heart rate.

Nucleus

The nucleus is a membrane-bound organelle within a cell that contains the genetic material (DNA).

Axon

A long fiber that extends from a neuron and transmits electrical impulses away from the neuron's cell body.

Myelin Sheath

A protective covering made of fatty substances that surrounds the axons of many nerve cells, aiding in the speedy transmission of electrical signals.