When Securities Are Sold Directly to a Small Group of Investors

question 34

Multiple Choice

When securities are sold directly to a small group of investors is termed:

• A)general issue.
• B)floating issue.
• C)public issue.
• D)private placement.

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Definitions:

False Dichotomy

A logical fallacy consisting of a situation in which only two alternatives are considered, when in fact there are additional options.

Reasoning Fallacy

A flaw or error in reasoning that undermines the logical validity of an argument.

Alternative Explanations

Different reasons or theories provided to account for a phenomenon or observation.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often requiring skepticism and the questioning of assumptions.