Question

The sale of a new security directly to an investor or a group of investors is called​ ________. A. a capital market transaction B. short selling C. arbitraging D. a private placement

Answer 1

The sale of the new security directly to an investor or a group of investor is called as a private placement

Explanation:

When the sales is done through a private offering and not through a public offering then it is called as a private placement and here more number of investors participate and they acquire the people or the product with the complete skill set

This will allow the company to grow and in this type of placement most of the investors are the friends and the family and the closed circle