Which of the following is true regarding private placements of primary security offerings?

Question

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Private placements involve selling securities directly to a select group of investors, typically institutional or wealthy investors. They do not require extensive registration statements with regulatory bodies like the OSC, and they do not trade in secondary markets like public offerings. Private placements may be more suitable for large issuances because they allow greater flexibility in structuring the offering and negotiating terms with investors. However, private placements typically have less liquidity than public offerings, as the secondary market for these securities may be limited.

Which of the Following Is True Regarding Private Placements of Primary