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:

AGI Deduction

Deductions from gross income that are allowed in computing for Adjusted Gross Income (AGI), affecting eligibility for various tax credits and deductions.

Early Withdrawal

Withdrawing funds from an investment or retirement account before a predetermined age or period, often resulting in penalties.

AGI Deduction

A reduction allowed in computing an individual's Adjusted Gross Income, which can include certain business expenses, educational expenses, or health savings account contributions.

Health Savings Account

A tax-advantaged savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan.