Which of the Following Statements Regarding Private Placements Is FALSE

question 33

Multiple Choice

Which of the following statements regarding private placements is FALSE?

• A)A private placement is a bond issue that does not trade on a public market but rather is sold to a small group of investors.
• B)Privately placed debt need not conform to the same standards as public debt;as a consequence,it can be tailored to the particular situation.
• C)In 1990,the U.S.Securities and Exchange Commission (SEC)issued Rule 144A,which significantly decreased the liquidity of certain privately placed debt.
• D)Because a private placement does not need to be registered,it is less costly to issue.

---

Definitions:

Tariffs

Taxes imposed by a government on imported goods and services, often used to protect domestic industries from foreign competition.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on global economics, politics, and culture.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level.

Import

The process of importing products or services from foreign countries for the purpose of selling them.