Which of the Following Statements Is Incorrect

question 42

Multiple Choice

Which of the following statements is incorrect?

• A)A private bond placement avoids the underwriting fee.
• B)Private placements of stocks are more common than private placements of bonds.
• C)The provisions of a privately placed bond issue can be tailored to the desires of the purchaser.
• D)A possible disadvantage of a private placement is that the demand may not be as strong as for a publicly placed issue.

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Definitions:

Cost

Cost is the amount of money required to purchase, produce, or maintain something, encompassing both direct expenses and indirect expenditures.

Transaction Costs

Expenses incurred in buying or selling a good or service, including search and information costs, bargaining costs, and enforcement costs of policies.

Efficient Solution

An outcome where resources are allocated in the most effective manner, maximizing benefits and minimizing costs or waste.

Social Benefit

The total advantage or positive impact on society from an action or policy, including both direct effects and externalities.