When a Firm Needs to Raise Money Via a Bond

question 19

Multiple Choice

When a firm needs to raise money via a bond issue,one of the quickest ways is through a ________.This activity involves the purchase of a large block of securities by a large institutional investor such as a pension fund,an endowment fund,or an insurance company.

• A)private placement.
• B)public placement.
• C)secondary offering.
• D)none of the above.

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Definitions:

Impression Management

The process by which individuals attempt to control the perceptions others have of them.

Symbolic Interactionism

A sociological perspective that analyzes society by studying the symbols and communication methods used by individuals to interpret and respond to their social environment.

Rational Choice Theory

Rational choice theory focuses on the way interacting people weigh the benefits and costs of interaction. According to rational choice theory, interacting people always try to maximize benefits and minimize costs.

Rational Choice Theory

A theoretical framework that suggests individuals make decisions based on the anticipated costs and benefits, aiming to maximize their advantage.