In Regards to Rule 144a, Which of the Below Statements

question 8

Multiple Choice

In regards to Rule 144a, which of the below statements is FALSE?

• A) Rule 144A encouraged non-U.S. corporations to issue securities in the U.S. private placement market by relaxing the requirement to hold the securities for two years.
• B) Rule 144A encourages non-U.S. corporations to issue securities in the U.S. private placement market by relaxing the requirement to furnish necessary disclosure set forth by U.S. securities laws.
• C) Rule 144A improved liquidity, reducing the cost of raising funds.
• D) Rule 144A improved the liquidity of securities acquired by all institutional investors in a private placement.

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Definitions:

Equivalent Annual Annuity

A financial calculation used to compare projects with different lifespans, by converting their net present values into equal yearly payments.

Cost of Capital

The essential yield required to validate the investment in a project involving capital budgeting, like erecting a new manufacturing plant.

Mutually Exclusive

Situations or options that cannot occur or be chosen at the same time, often requiring a choice to be made between them for decision-making purposes.

Replacement Chain

A method for analyzing and comparing the economic life of alternative investment projects by equalizing their life spans through repeated investments.