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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.

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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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