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Which statement is correct for private placement?

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Which of the following statements is most correct?

a. In a private placement, securities are sold to private (individual) investors rather than to institutions.

b. Private placements occur most frequently in stock issues, but bonds can also be sold by private placement.

c. Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.

d. The SEC requires that all private placements be handled by an investment banker.

e. The above statements are all false.

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This solution is comprised of a detailed explanation of which statement is true or false with more than 200 words of text.

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Which of the following statements is most correct?

a. In a private placement, securities are sold to private (individual) investors rather than to institutions.

This is false because in a private placement, securities are sold to both individual and institutional investors. Mostly they are sold to institutional investors rather than ...

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