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

Question

Quizplus · Accepted Answer

A private placement is the sale of the entire issue of securities to a small group of institutional investors, avoiding the need for a public offering. This method is commonly used for issuers who do not meet the requirements of a public offering or who wish to avoid the regulatory requirements that come with a public offering.

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