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

Question

Quizplus · Accepted Answer

When a company sells an entire issue of securities to a small group of institutional investors like life insurance companies, pension funds, and so forth, it is called a private placement. Private placements are exempt from registration with the Securities and Exchange Commission (SEC) and are typically used to raise capital quickly and cost-effectively. Choices A, B, and D do not match the given scenario.

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