A Private Placement Avoids Which One of the Following Costs

question 30

Multiple Choice

A private placement avoids which one of the following costs?

• A) Depression in the stock price
• B) Administration costs
• C) Registration with the SEC
• D) Legal costs

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Definitions:

Use of Cash

Refers to the ways in which a company or individual utilizes available cash resources.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Accounts Payable

Liabilities of a business that represent its obligations to pay off short-term debts to its creditors or suppliers.

Common Stock

A form of investment indicating a share in a company's ownership, entitling the holder to a portion of its profits or losses.