📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Issue of securities, debt or equity, to a limited number

      of subscribers, such as banks, FIs, MFs and high net worth individuals, is called? 
      A Primary issue Correct Answer Incorrect Answer
      B Secondary issue Correct Answer Incorrect Answer
      C Book building Correct Answer Incorrect Answer
      D Private Placement Correct Answer Incorrect Answer
      E Merchant Banking Correct Answer Incorrect Answer

      Solution

      Private placement is issuance of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and high net worth individuals. Private Placement is arranged through a merchant/investment banker, who brings together the issuer and the investor(s). As securities are allotted to a few investors and the general public does not have much stake in it, the securities offered in a private placement are exempt from the public disclosure regulations.

      Practice Next
      More Finance Questions

      Relevant for Exams:

      ask-question