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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Definitions:

Socioeconomic Status

An individual or group's position within a hierarchical social structure, often determined by income, education, and occupation.

Racial

Pertaining to race, it involves the categorization of individuals based on physical characteristics, ancestry, historical affiliation, or shared culture.

Self-Esteem

The subjective evaluation of one's own worth or abilities.

Cooperation

The process of groups or individuals working together towards a common goal, often enhancing efficiency and outcomes.