In: Finance
Which one of the following best fits the description of private placement?
a) 3- year commercial bank loan
b) 3-year loan to a firm by its original founder
c) 10-year loan from an insurance company
d) 20-year bonds sold in the public markets
e) 2-year direct business loan
Option - C
Explanation: private placements refers to bonds that are issued in a private sale rather than through public markets. The investors in a privately placed bonds are institutional investors such as insurance companies, endowments, pension funds .
Hence option c satisfies the definition & which is more safer for the private placements