Which of the following statements is CORRECT concerning corporations’ raising capital in equity markets?
A) Unsyndicated stock offerings are more expensive than syndicate offerings.
B) Securities and Exchange Commission (SEC) controls margin requirements.
C) The Federal Reserve Board regulates trading by corporate insiders.
D) In a private placement, securities are offered to the public and must be registered with SEC
E) Venture capitalists intend to sit on boards of companies they fund.
Ans) B) Securities and Exchange commission controls margin requirement
Reason
Option A is false as Unsyndicated stock offerings are cheap than syndicate offerings
Option C is false as federal reserve do not regulate trading by corporate insiders
Oprion D is false as in private placement , securities are offered to group of individuals and is exempt from registering with SEC
Option E is false as Venture capitalist invest in companies having high potential , they do not intend to take control of business
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