Ask Question
21 February, 16:29

To raise $5 million, southeastern corporation decides to issue bonds. if southeastern does not register the bonds with the sec and then sells the entire bond issue to metropolitan life insurance company, this issue is called a (n) :

+2
Answers (1)
  1. 21 February, 16:48
    0
    The answer is private placement. It is the transaction of securities to a moderately small number of select investors as a way of raising capital. Investors involved in private placements are frequently large banks, mutual funds, insurance companies and pension funds. A private placement is not the same from a public issue, in which securities are made accessible for sale on the open market to any type of investor. Since a private placement is obtainable to a few selected individuals, the placement does not have to be recorded with the Securities and Exchange Commission (SEC). In many circumstances, thorough financial information is not disclosed and the investment is not sold by prospectus.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “To raise $5 million, southeastern corporation decides to issue bonds. if southeastern does not register the bonds with the sec and then ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers