n NISM Certifications
VII NISM Series VII
Medium

Which of the following best describes the term “Private Placement”?

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Issue made to all investors in the Indian securities market

  2. Issue made to select group of people

    Correct answer

  3. C

    Issue made to investors who already hold shares of the company

Why this is the answer

A private placement is offered only to a select group, unlike a public issue which is open to all investors.

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