Match the term with its definition.
-The sale of a firm's capital stock to select individuals
A)balloon payment
B)business angels
C)chattel mortgage
D)crowdfunding
E)factoring
F)initial public offering (IPO)
G)private placement
H)real estate mortgage

Question

Quizplus · Accepted Answer

Private placement is the sale of a firm's capital stock to select individuals.

Note: Balloon payment refers to a large lump sum payment that is made at the end of a loan term. Business angels refer to individuals who provide capital and expertise to new businesses. Chattel mortgage is a loan secured by personal property. Crowdfunding refers to raising funds for a project or venture through small contributions from a large number of people. Factoring is a financial transaction in which a business sells its accounts receivable to a third party at a discount. Initial public offering (IPO) is the issuance of a company's shares to the public for the first time. Real estate mortgage is a loan secured by real estate.

Match the Term with Its Definition