When a business sells its stocks or bonds to investors without going through any type of intermediary or financial institution, this process is known as a(n) _____.

Question

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Direct transfer is the process in which a business sells its stocks or bonds directly to investors without going through any intermediary or financial institution. This eliminates the need for underwriting or best-effort arrangement, and investors can purchase the securities directly. This type of transfer is common in private placements or crowdfunding campaigns.

When a Business Sells Its Stocks or Bonds to Investors