Which of the Following Is a Drawback of Private Placements

question 56

Multiple Choice

Which of the following is a drawback of private placements?

• A) They are more complex and expensive than public offerings.
• B) Complex registration documents need to be prepared for their financing.
• C) They are required to register with the Securities and Exchange Commission.
• D) They do not have the potential to raise as much money as public offerings.

---

Definitions:

Geographical Separation

The physical distance between locations, often affecting social, economic, or political relations.

Transnational Communities

Communities whose boundaries extend between countries.

Ethnic Groups

Collectives of people who share a common identity based on cultural characteristics such as language, religion, ancestral heritage, and traditions.

Boundaries

Limitations or borders that define the scope of responsibilities, roles, and distinctions between entities or concepts.