Finance
What is 'private placement' financing in Delaware commercial real estate?
AA mortgage from a private bank rather than a public institution
BRaising capital through the direct sale of securities to a limited number of accredited investors, bypassing public markets✓ Correct
CPlacing a private lien on property as security
DPrivate negotiations between buyer and seller to determine mortgage terms
Explanation
Private placement involves raising capital directly from accredited investors (institutional investors, high-net-worth individuals) without a public offering. It is commonly used in commercial real estate to fund acquisitions or development projects.
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