The biggest drawback of private placements involves restrictions on the resale of the securities.

Question

Quizplus · Accepted Answer

Private placements involve securities that are not registered with public securities agencies like the SEC. As a result, they are subject to restrictions on their resale. This lack of liquidity can be a significant drawback for investors who may not be able to easily sell their securities if they need to liquidate their investment for any reason.

The Biggest Drawback of Private Placements Involves Restrictions on the Resale