When stock and other corporate securities are sold directly to insurance companies,pension funds,or large institutional investors it is said that a(n)____ has been made.
A) private placement
B) initial public offering
C) discrete sale
D) private transaction

Question

​When stock and other corporate securities are sold directly to insurance companies,pension funds,or large institutional investors it is said that a(n)____ has been made.
A) ​private placement
B) ​initial public offering
C) ​discrete sale
D) ​private transaction

Quizplus · Accepted Answer

A private placement is a sale of securities directly to institutional investors, such as insurance companies or pension funds, rather than to the general public through a public offering. This type of sale is often used by companies that want to raise capital without the expense and disclosure requirements of a public offering. Therefore, A is the correct choice. B) initial public offering refers to when a company issues public shares for the first time to the general public. C) discrete sale and D) private transaction are not commonly used terms in this context.

​When Stock and Other Corporate Securities Are Sold Directly to Insurance

When Stock and Other Corporate Securities Are Sold Directly to Insurance