When a company sells an entire issue of securities to a small group of institutional investors like life insurance companies, pension funds, and so forth, it is called a(n)
A)rights offering.
B)general art offering.
C)private placement.
D)unseasoned issue.

Question

Quizplus · Accepted Answer

The scenario described is that of a private placement, which involves selling securities to a small group of institutional investors. A rights offering and a general art offering involve selling securities to a larger group of investors. An unseasoned issue refers to a first-time issue of securities by a company.

When a Company Sells an Entire Issue of Securities to a Small