A bond issue that does NOT trade on the public market but instead is sold to a small group of investors is called a(n):

Question

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A bond issue that is sold to a small group of investors is called a private placement. Private placements are typically used by companies that cannot meet the requirements for listing on public exchanges or those who wish to keep their financial information private. Private placements are also preferred by investors who seek higher yields and are willing to take on additional risks.

A Bond Issue That Does NOT Trade on the Public