Which of the Following Is the Main Reason for Private

question 92

Multiple Choice

Which of the following is the main reason for private placements being less expensive than public offerings?

• A)In a private placement, the requirement for hiring an expensive investment bank to trade the stocks on behalf of the company is not mandatory.
• B)In private placements, issuers of stocks can quote a high price to the limited number of investors and get high returns.
• C)Private placements takes place within a firm itself, thereby avoiding expenditures on resources.
• D)Privately placed securities are exempt from the requirement to register with the Securities and Exchange Commission (SEC).

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Definitions:

Open-book Management

A business strategy where a company shares financial and other operational information with all employees to engage them in decision making.

Just Cause

A legitimate or legally valid reason, often used in the context of firing or disciplining an employee.

Dismissal

The act of terminating an employee's employment by the employer, often due to performance issues or breaches of contract.

Incompetence

The lack of necessary skills, knowledge, or ability to perform a job or task effectively and to the required standard.