In the private placement market the term "due diligence" means
A) an investor finding an honest agent from whom to buy a bond.
B) a borrower finding an honest agent to sell its bonds.
C) conducting a credit analysis of the borrower.
D) an agent tailoring terms of the placement to meet investor needs.

Question

Quizplus · Accepted Answer

Due diligence in the private placement market refers to conducting a credit analysis of the borrower. It involves evaluating the financial health and creditworthiness of the borrower before agreeing to invest in their bonds. This helps investors determine the risk associated with the investment and make informed decisions.

In the Private Placement Market the Term "Due Diligence" Means