Which of the Following Statements Concerning Private Placements Is MOST

question 19

Multiple Choice

Which of the following statements concerning private placements is MOST correct?

• A) Private placements do not involve investment bankers.
• B) Although not selling the securities to the public, investment bankers may provide advice on the evaluation of prospective buyers and the terms of sale for private placements.
• C) Private placements are limited to stocks, not bonds.
• D) More than half of all private placements are sold to federal, state, or local governments or government agencies.

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Definitions:

Legal Action

A formal process in which a legal proceeding is initiated to enforce a particular right, seek a remedy for a breach, or obtain a legal ruling.

Severe Inflation

A rapid and unchecked increase in prices within an economy, significantly eroding purchasing power.

Biscuit Packs

Typically refers to packages containing biscuits, prepared for retail sale.

Supply Contract

An agreement between a supplier and buyer for the provision of goods or services over a specified period.