Asked by Jennah Marie on Apr 27, 2024
Verified
_____ would be the LEAST likely to obtain a private placement.
A) Small individual investors
B) Life insurance companies
C) Commercial banks
D) Pension fund managers
Private Placement
The sale of securities to a relatively small number of selected investors as a way of raising capital, not publicly offered in the open market.
Commercial Banks
Financial institutions that offer a wide range of services like accepting deposits, providing business loans, and offering basic investment products.
Pension Fund Managers
Pension fund managers are professionals responsible for managing investment strategies for pension funds to ensure there are sufficient assets to pay out retirees' pensions.
- Understand the characteristics and differences between various sources of finance such as debt capital, equity capital, commercial paper, and venture capital.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
Small individual investors would be the least likely to obtain a private placement because private placements are typically offered to institutional investors or high-net-worth individuals due to the large minimum investment requirements and the need for the investor to have a certain level of financial sophistication.
Learning Objectives
- Understand the characteristics and differences between various sources of finance such as debt capital, equity capital, commercial paper, and venture capital.