The Biggest Drawback of Private Placements Involves Restrictions on the Resale

question 4

True/False

The biggest drawback of private placements involves restrictions on the resale of the securities.

---

Definitions:

Subordinate

An individual or entity that is lower in rank, position, or importance relative to another.

Psychological Reactance

A behavioral response to restrictions on personal freedoms, often resulting in a desire to reclaim or reassert those freedoms.

Providing Alternatives

Offering different options or choices as solutions to a particular problem or issue.

Limiting Freedom

The act of restricting individual choices, actions, or liberty.