Which One of the Following Identifies a New Bond Issue

question 7

Multiple Choice

Which one of the following identifies a new bond issue as being a private placement?

• A)The proceeds of the issue are used for a single project.
• B)The issue is marketed through a sole brokerage house.
• C)The issue is sold only to individuals rather than to institutional investors.
• D)The issue is not made available to the public.
• E)The issue names a private individual as the bond trustee.

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Definitions:

Misrepresented

Incorrectly or falsely represented information, which can lead to misunderstandings or legal issues within agreements or contracts.

Innocently

Without guilt, harm, or malice; in a manner free from wrongdoing or deception.

Induce

To lead or move by persuasion or influence, often to do something.

Rescission

The act of canceling or invalidating a contract, returning all parties to their state prior to the contract.