A negotiated sale of securities by an issuer to a specific buyer is called a(n):
A)public offering
B)secondary placement
C)specialised sale
D)independent placement
E)private placement

Question

Quizplus · Accepted Answer

A private placement is a negotiated sale of securities by an issuer to a specific buyer, such as a private equity firm or wealthy individual, rather than a public offering to a large number of investors. It is different from a secondary placement, which involves the sale of securities by an existing shareholder, and from an independent placement, which does not involve the issuer directly. A specialised sale is not a commonly used term in finance.

A Negotiated Sale of Securities by an Issuer to a Specific