The issue of shares to identified investors is known as a: Group of answer choices a. non-for-profit issue. b. public issue. c. debt raising. d. private placement.
Question
The issue of shares to identified investors is known as a: Group of answer choices
a. non-for-profit issue.
b. public issue.
c. debt raising.
d. private placement.
Solution
The correct answer is:
d. Private placement.
This term refers to the sale of securities to a small number of select investors as a way of raising capital. These investors include mutual funds, banks, insurance companies, and pension funds. Private placement is different from a public issue
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