33. Which of the following statements is/are TRUE regarding private placement tr

Question

33. Which of the following statements is/are TRUE regarding private placement transactions? CIRCLE ALL THAT APPLY. 2 points) a. Private placements received expedited review and approval by the Securities and Exchange Commission and therefore can allow an issuer to raise funds more rapidly than in a public offering. n investor wishing to participate in a private placement transaction must have a large quantity of money available to invest since the securities are typically sold to a limited number of purchasers. Private placement transactions can be used to sell debt or equity securities. Investment bankers play key roles in private placement transactions by advising the issuer on the appropriate terms for the securities being offered and by identifying potential purchasers of the securities. b. 8 c. d.

Explanation / Answer

All are true in Private placement parlance

Private placement deals with the accredited investors those are linked with SEC makes life much more easier in terms of proceedings when we comapred to that of IPO

Private palcements deal with only accredited investors likw Insurance companies, Pension funds etc. which are less in number and keep huge chunk of liquid assets

Privat Placement can be in both type of securites such as debt or equity.

Inestment banks can help Private Placements by providing agency to find out potential purchasers of securities

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