Which of the following statements accurately describes an implication of raising equity funds via a private placement to an institutional investor who was not a previous shareholder in the company?

a. Placements will only be attractive to the institutional investor if they are priced at a discount to the pre-placement traded price of the companys shares. b. Such a placement will decrease the voting power of the pre-existing shareholders in the company.

c. When such a placement is conducted at a discount to the pre-placement market price of the issuing companys shares, pre-existing shareholders will necessarily suffer a loss in the value of their own shares when the placement is announced. d. More than one of the above statements are correct.

e. None of the above statements are correct.

the answer given is b, but isn't A & C correct as well?