Assertion: Entrepreneurs both from public limited and private limited sector, bank heavily upon raising funds through the issue of varied financial instruments by way of private placement.
Reasoning: These entrepreneurs, at times, do not wish to disclose information to the open market.
Reasoning: These entrepreneurs, at times, do not wish to disclose information to the open market.
Answer & explanation
Correct answer: option 1
Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors. Entrepreneurs, herein, raise funds by selling the issues mainly to the institutional investors.
Entrepreneurs both from public limited and private limited sector, bank heavily upon raising funds through the issue of varied financial instruments under this segment as at times they do not wish to disclose information to the open market.