CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which statement(s) is (are) true regarding private investment in public equity (PIPE)?

I. PIPEs are attractive to some investors because the shares can be purchased at a discount to the public market price.
II. PIPEs are often highly dilutive and destructive to the existing shareholder base.
Correct Answer: Both are true.

User Contributed Comments 2

User Comment
khalifa92 is it because they are sold @ discount?
Antoinepo Often they will use debt leverage while doing an acquisition, which dilute the equity!
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