Which of the following is not true about private placement?
A) The sale of securities directly to the ultimate investor and not through a public offering.
B) The underwriting function cannot be avoided.
C) A fee is earned for the origination/selling or uniting the supplier and user of funds.
D) A private placement may reduce the total flotation costs for a business.
E) It is used by both lesser-known firms and large, well-known firms in need of funds.
Correct Answer:
Verified
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