Burberry Mills sold stock to an insurance company to raise needed financing for expansion and new product development. This type of transaction is referred to as a(n)

Question

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The transaction described in the scenario is a private placement, where a company sells securities, such as stocks or bonds, directly to private investors, such as insurance companies or pension funds, rather than offering them for public sale on a stock exchange. This is a common way for companies to raise capital without having to disclose sensitive financial information to the public.

Burberry Mills Sold Stock to an Insurance Company to Raise