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.

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Definitions:

Fit To Stand Trial

A legal determination that an individual has the mental capacity to understand court proceedings and participate in their defense.

Communicating With Counsel

The process of exchanging information and ideas with a legal advisor or counselor, often regarding legal rights, obligations, and strategies.

Statutory Law

A written or codified statement of the law in a given area, enacted by government.

Rights And Freedoms

Fundamental principles that recognize and protect the liberty and entitlements of individuals, often enshrined in laws and constitutions.