Which one of the following best describes a private placement?

Question

Quizplus · Accepted Answer

A private placement is a method of raising capital where a company sells securities to a limited number of accredited investors, such as institutional investors or high net worth individuals. This differs from a public offering where securities are open to the general public. In a private placement, the offering is typically for a long-term loan or equity investment. Therefore, option B, a long-term loan by a limited number of investors, best describes a private placement.

Which One of the Following Best Describes a Private Placement