Which of the following statements is incorrect?
A) In a private placement, a public firm seeks to find a large institutional buyer or group of buyers to purchase the whole issue.
B) In a competitive sale, the bond-issuing firm invites bids from a number of underwriters.
C) In a negotiated sale, a single investment bank obtains the exclusive right to originate, underwrite and distribute the new bonds through a one-on-one negotiation process.
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

All the statements accurately describe different methods of issuing securities. A) describes a private placement, B) outlines a competitive sale process for bonds, and C) details a negotiated sale, all of which are correct in the context of financial markets.

Which of the Following Statements Is Incorrect