Which of the Following Statements Best Describes Private Placements

question 39

Multiple Choice

Which of the following statements best describes private placements?

• A)In a private placement, securities are sold to private (individual) investors rather than to institutions.
• B)Private placements occur most frequently with stocks, but bonds can also be sold in a private placement.
• C)Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.
• D)Private placements can generally bring in funds faster than is the case with public offerings.

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Definitions:

Sexual Maturity

The stage in an organism's life cycle when it becomes capable of reproductive activity.

Secular Trend

Trend that can be seen only by observing several generations, such as the trend toward earlier attainment of adult height and sexual maturity, which began a century ago in some countries.

Primary Sex Characteristics

Organs directly related to reproduction, which enlarge and mature during adolescence.

Gonads

The primary reproductive organs that produce gametes (sperm in males, ova in females) and various sex hormones; the testes in males and ovaries in females.