Companies Making Smaller Security Issues May Prefer to Issue Them

question 95

Multiple Choice

Companies making smaller security issues may prefer to issue them through:

• A) a private placement because lower rates of return can be offered.
• B) a private placement because it is cheaper than a public issue.
• C) a public issue because it is cheaper than a private placement.
• D) a public issue because more exposure will be achieved.

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Definitions:

Structural Unemployment

Unemployment arising from a persistent mismatch between the skills of workers and the requirements of jobs, often exacerbated by technology or market changes.

Frictional Unemployment

Temporary unemployment experienced by individuals transitioning between jobs, seasons, or moving to new locations.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded.

Job Searching

The process by which individuals seek and find employment opportunities.