Which of the following statements best describes private placements?
A)In a private placement, securities are sold to private (individual) investors rather than to institutions.
B)Private placements occur most frequently with stocks, but bonds can also be sold in a private placement.
C)Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.
D)Private placements can generally bring in funds faster than is the case with public offerings.

Question

Quizplus · Accepted Answer

Private placements can generally bring in funds faster than public offerings because they involve selling securities directly to a small group of investors, bypassing the lengthy process of a public offering.

Which of the Following Statements Best Describes Private Placements