Which of the Following Statements Regarding Private Placements Is False

question 23

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.

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Definitions:

Natchez

A city in Mississippi known for its rich history, particularly before and during the Civil War, including its role in the slave trade.

Black Louisianans

African American residents of Louisiana, with a rich cultural heritage that includes Creole and Cajun influences.

Francisco Menendez

A leader of the fortified Mose community in Florida, providing a haven for escaped slaves in the 18th century.

Free Black Town

A self-governing community established by African Americans, where individuals lived free from the restrictions of slavery, notable examples include Seneca Village in New York.