Which of the following statements is most CORRECT?
A) Private placements occur most frequently with stocks, but bonds can also be sold in a private placement.
B) Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.
C) The SEC requires that all private placements be handled by a registered investment banker.
D) Private placements can generally bring in funds faster than is the case with public offerings.
E) In a private placement, securities are sold to private (individual) investors rather than to institutions.

Question

Quizplus · Accepted Answer

Private placements can indeed bring in funds faster than public offerings because they involve selling securities directly to a small group of institutional investors, bypassing many of the regulatory requirements and processes associated with public offerings. This streamlined process allows for quicker access to capital.

Which of the Following Statements Is Most CORRECT