PRC-3 · Chapter 4 · Question 44 of 65
If a company decides to issue new shares, but only offers them to a selected, restricted group of wealthy institutional investors rather than the general public, this process is termed:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Placement of shares
Explanation
A private placement involves selling shares to a small, pre-selected group of investors rather than conducting a public offering.
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