Which of the Following Statements Is Most CORRECT

question 11

Multiple Choice

Which of the following statements is most CORRECT?

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