Series 79 practice questioneasyPrivate Placements
Under Rule 144A, a buyer generally must be what type of investor?
- AA qualified institutional buyer that owns and invests at least $100 million of securities of unaffiliated issuers✓ Correct answer
- BAny retail customer with a margin account
- COnly a natural person accredited investor
- DA municipal issuer
Explanation
Why A — A qualified institutional buyer that owns and invests at least $100 million of securities of unaffiliated issuers
A qualified institutional buyer that owns and invests at least $100 million of securities of unaffiliated issuers Rule 144A is designed for resales to sophisticated institutional investors meeting the QIB standard. That framework supports large private placements with institutional liquidity.
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