Which of the Following Is Not True About Private Placement

question 45

Multiple Choice

Which of the following is not true about private placement?

• A) The sale of securities directly to the ultimate investor and not through a public offering.
• B) The underwriting function cannot be avoided.
• C) A fee is earned for the origination/selling or uniting the supplier and user of funds.
• D) A private placement may reduce the total flotation costs for a business.
• E) It is used by both lesser-known firms and large, well-known firms in need of funds.

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Definitions:

SNRIs

Serotonin and Norepinephrine Reuptake Inhibitors, a class of antidepressants that work by increasing the levels of serotonin and norepinephrine neurotransmitters in the brain.

SSRIs

Selective Serotonin Reuptake Inhibitors, a class of drugs typically used as antidepressants in the treatment of depression, anxiety disorders, and some other conditions.

Norepinephrine

A neurotransmitter and hormone involved in the body’s fight or flight response; it plays a role in mood regulation.

Serotonin

A neurotransmitter that plays a significant role in mood regulation, digestion, and sleep.