CFA Practice Question

CFA Practice Question

Which one of the following is false?
A. Shelf registration allows firms to register security issues and sell them at short notice whenever it suits them.
B. Private placements where the firm with the assistance of investment bankers sells primary offerings to institutions, typically have higher issuing costs to the issuing firm, and lower yields to the purchasing institutions.
C. Initial Public Offerings (IPOs) are usually underwritten and acquired by investment banks who sell them to investors.
Explanation: Private placements usually have lower issuing costs to the issuing firm, and higher yields to the purchasing institutions.

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