When a company sells an entire issue of securities to a small group of institutional investors like life insurance companies,pension funds,etc.,it is called a(an):
A)rights offering.
B)general art offering.
C)private placement.
D)unseasoned issue.

Question

Quizplus · Accepted Answer

Selling an entire issue of securities to a small group of institutional investors is called a private placement. This is different from a general art offering, which is open to the public, and a rights offering, which allows current shareholders to buy additional shares. An unseasoned issue typically refers to a new company or one that has a limited financial track record.

When a Company Sells an Entire Issue of Securities to a Small