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:

Animal Studies

Research conducted on animals to study biological and behavioral processes that may be relevant to humans or other species.

Correlational Approach

A research method used to explore the relationship between two or more variables, without determining cause and effect.

Quasi-experimental

A research design that resembles an experimental design but does not include random assignment of participants to conditions or orders of conditions.

Correlational Studies

Research methods that examine the relationship between two or more variables to determine if a change in one variable is associated with a change in another.