Rule 144A permits the resale of unregistered securities to qualified

Question

Quizplus · Accepted Answer

Rule 144A allows the resale of unregistered securities to qualified institutional buyers (QIBs). These buyers are typically large financial institutions such as banks, insurance companies, and pension funds that have enough financial knowledge and expertise to evaluate the risks and rewards of such investments. The other options listed are not correct because Rule 144A does not apply to issuers or federal banks, and while underwriters may be involved in the resale process, they are not the actual buyers themselves.

Rule 144A Permits the Resale of Unregistered Securities to Qualified