When securities are sold directly to a small group of investors is termed:
A)general issue.
B)floating issue.
C)public issue.
D)private placement.

Question

Quizplus · Accepted Answer

Private placement refers to the sale of securities directly to a small group of investors, rather than through a public offering. This is often used by companies that are not yet ready to go public or who do not want to go through the regulatory requirements of a public offering. General issue, floating issue, and public issue all refer to types of public offerings.

When Securities Are Sold Directly to a Small Group of Investors