Which of the following is not a reason to sell securities in a private placement?
A) to keep current shareholders from suspecting "sweetheart deals"
B) to forestall a hostile takeover
C) to fulfill a need for an emergency infusion of equity
D) to reduce dividend payouts to shareholders

Question

Quizplus · Accepted Answer

Selling securities in a private placement would not be done to reduce dividend payouts to shareholders. Private placements are often done to bring in new equity or funding, maintain control within a company, or avoid regulatory requirements for public offerings.

Which of the Following Is Not a Reason to Sell