What is private placement of securities?

Multiple Choice

• A procedure that allows a company to register securities and then sell them over a period of two years without reregistering.
  Incorrect
• A procedure that allows the sale of securities to no more than 35 sophisticated knowledgeable investors, with no general solicitation allowed.
• A method of filing Form 10-K with the SEC.
• The registration of mutual funds that engage in investing and trading securities.
• A sale of securities to no more than 50 accredited investors, with no general solicitation allowed.