SIE practice questionmediumPrivate Equity
A typical characteristic of private equity funds is that they:
- ACan be freely traded on stock exchanges
- BHave long holding periods before liquidity events✓ Correct answer
- CDo not require accredited or institutional investors
- DInvest mainly in short-term money market instruments
Explanation
Why B — Have long holding periods before liquidity events
Private equity funds commonly have long holding periods before liquidity events and are often limited to accredited or institutional investors. They are not freely traded on exchanges and do not focus on short-term money market instruments.
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