Private placement of securities involves:

Question

Quizplus · Accepted Answer

Private placement of securities involves the nonpublic sale of securities to a limited number of investors. This is typically done to avoid the costs and regulations associated with a public offering. Choice A is incorrect because selling only to the firm's current investors would not be considered a private placement. Choice B is incorrect because the name of the issuing firm is typically disclosed to potential investors during the private placement process. Choice C is incorrect because the exchange of convertible bonds for equity is a specific type of security transaction, not a general characteristic of private placement.

Private Placement of Securities Involves