Which of the Following Statements Concerning Private Placements Is Most

question 70

Multiple Choice

Which of the following statements concerning private placements is most correct?

• A) Private placements do not involve investment bankers.
• B) Although not selling the securities to the public, investment bankers may provide advice on the evaluation of prospective buyers and the terms of sale for private placements.
• C) Private placements are limited to stocks, not bonds.
• D) More than half of all private placements are sold to federal, state, or local governments or government agencies.

---

Definitions:

New Producers

Entities or individuals that have recently entered a market to offer goods or services.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount received from the sale, indicating the benefit to producers.

Supply Curve

A visual diagram illustrating the correlation between a product's price and the amount of it suppliers are prepared to produce.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.