Which ONE of the Following Statements Is True

question 14

Multiple Choice

Which ONE of the following statements is true?

• A) A private placement occurs when a company sells securities directly to investors such as superannuation funds, commercial banks and wealthy individuals.
• B) Most private placements involve the sale of equity issues.
• C) A private placement is arranged and finalised slower than an open public offer.
• D) The offer price in a private placement is likely to be less than that of an open offer.

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Definitions:

Go Private

The process by which a publicly traded company is transformed into a privately held entity, often through the purchase of all outstanding shares.

Complying With Rules

The act of following guidelines, regulations, or standards that have been set by an authority or governing body.

Majority Shareholders

Individuals or entities that own more than half of a company's shares, thus holding significant influence or control.

Quorum

The minimum number of members needed to be present at a meeting to make the proceedings of that meeting valid.