- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 47. Introduction to Alternative Investments
- Subject 5. Private Capital
CFA Practice Question
Which best describes venture capital?
A. Venture capital is typically a secondary form of financing, after bank financing.
B. Venture capital is in the form of equity.
C. Venture capital is financing for privately held companies, typically in the form of equity and/or long-term debt.
Explanation: Venture capital becomes available when financing from banks and public debt or equity markets is either unavailable or inappropriate.
User Contributed Comments 1
User | Comment |
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samco | Venture capital is financing for privately held companies, in the form of equity and/or long term debt. |