Answer the below questions pertaining to the private-placement corporate debt market. (a) Do you agree or disagree
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(a) Do you agree or disagree with the following statement? “Since Rule 144A became effective, all privately placed issues can be bought and sold in the market.”
(b) Do you agree or disagree with the following statement? “Traditionally privately placed issues are now similar to publicly offered securities.”
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a As seen in the discussion that follows one would disagree with the statement because not all privately placed issues are Rule 144A private placements which are the only private placements eligible for tradingSecurities privately placed are exempt from the registration with the SEC because they are issued in transactions that do not involve a public offering The privateplacement market has undergone a major change since the adoption of SEC Rule 144A in 1990 which allows the trading of privately placed securities among qualified institutional buyers However not all private placements are Rule 144A private placement ...View the full answer
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