All of the following are methods of direct financing exceptQuestion 26Select one:a.insurance underwritersb.private placementsc.brokers and dealersd.investment bankers
Question
All of the following are methods of direct financing exceptQuestion 26Select one:a.insurance underwritersb.private placementsc.brokers and dealersd.investment bankers
Solution
The question is asking which of the given options is not a method of direct financing.
a. Insurance underwriters b. Private placements c. Brokers and dealers d. Investment bankers
Direct financing involves a company raising capital directly from investors, without going through a financial intermediary.
a. Insurance underwriters - They are not typically involved in direct financing. They assess the risk and exposures of potential clients.
b. Private placements - This is a method of direct financing. Companies sell securities directly to an institutional investor.
c. Brokers and dealers - They can be involved in direct financing. They help companies sell securities directly to investors.
d. Investment bankers - They are involved in direct financing. They help companies issue new securities to investors.
So, the correct answer is a. Insurance underwriters. They are not typically involved in direct financing.
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