Which of the Following Statements Is True of PIPE Transactions

question 66

Multiple Choice

Which of the following statements is true of PIPE transactions?

• A) Under federal securities law, they can be resold to investors in the public markets immediately even if they are not registered.
• B) As part of the PIPE contract, the company often agrees to register the restricted securities with the SEC, usually within 90 days of the PIPE closing.
• C) As part of the PIPE contract, the company often agrees to register the restricted securities with the SEC after 90 days of the PIPE closing.
• D) PIPE transactions involving a healthy firm can also be executed without the use of an investment bank but result in a cost increase of 7 to 8 percent of the proceeds.

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