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Which of the Following Statements Regarding Private Placements Is FALSE

Question 16

Multiple Choice

Which of the following statements regarding private placements is FALSE?


A) A private placement is a bond issue that does not trade on a public market but rather is sold to a small group of investors.
B) Privately placed debt need not conform to the same standards as public debt;as a consequence,it can be tailored to the particular situation.
C) In 1990,the U.S.Securities and Exchange Commission (SEC) issued Rule 144A,which significantly decreased the liquidity of certain privately placed debt.
D) Because a private placement does not need to be registered,it is less costly to issue.

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