When securities are allotted to institutional investors and some selected individuals, are referred to as _________.

Initial public offer

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Offer through the prospectus

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Private placement

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Offer for sale

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Solution

The correct option is C
Private placement

Answer (C) Private placement
Explanation: As the name proposes, a ‘private placement’ is a private substitute for issuing, or selling, a publicly offered security as a method for raising capital. In a private placement, both the sale and offering of equity and debt securities are made between a business, or guarantor, and a select number of financial backers. There might be just about as one financial backer for any issue.

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