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:

Surface/Source Traits

describe personality attributes observable in behavior (surface traits) and the underlying reasons for those behaviors (source traits).

Common/Unique Traits

Attributes or characteristics that can be widely shared among individuals or distinctively unique to an individual.

Obvious/Hidden

Pertains to phenomena or characteristics that are readily apparent versus those that are concealed or not immediately noticeable.

Nature and Nurture

The debate regarding the relative contributions of genetics (nature) and environment (nurture) to individual development and behavior.