Which of the Following Statements Is Incorrect Concerning Private Placements

question 52

Multiple Choice

Which of the following statements is incorrect concerning private placements?

• A)terms of the financing can be custom-tailored.
• B)the securities are not made available to the public.
• C)the securities are often less marketable.
• D)only a small amount of corporate debt is financed in this manner.

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Definitions:

Cash

Money in the form of notes and coins, representing immediate purchasing power and liquidity.

Bank Vaults

Secure rooms where banks and other financial institutions store money, valuable documents, and other assets.

Fed

Short for the Federal Reserve, the central banking system of the United States, which regulates the U.S. monetary and financial system.

Open Market

An economic system with no barriers to free market activities, where securities, goods, and services can be traded openly.