Which ONE of the following statements is true?

Question

Quizplus · Accepted Answer

A private placement is a direct sale of securities to a group of investors, including superannuation funds, commercial banks, and wealthy individuals. Private placements can involve equity or debt issues depending on the company's needs. Private placements tend to be faster and more cost-effective than public offerings, as there are fewer regulatory requirements and no need for marketing to a wider audience. Moreover, the offer price in a private placement is typically higher than that of an open offer as investors are willing to pay a premium for a direct investment opportunity.

Which ONE of the Following Statements Is True