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WAEC Commerce 2018 Question 45

Question 45

Stock Exchange

A system of issuing new shares to selected investors instead of the general public is

  1. A.public offer.
  2. B.issue by tender.
  3. C.offer for sale.
  4. D.private placement.
Show the answer and explanation

Answer: D (private placement.)

Explanation

In a private placement, new shares are sold directly to a few selected investors rather than offered to the public.