When Securities Are Sold Directly to a Small Group of Investors

question 95

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

---

Definitions:

Stockholders

Individuals or entities that own shares in a corporation, thereby having a claim to a part of its assets and earnings.

Legal Entity

An individual, company, or organization that has legal rights and obligations, including the capacity to enter legal contracts, sue, and be sued.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and use by one person does not reduce availability to others.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.