Question

For an institutional investor to qualify as a "QIB" under Rule 144A, the institution must have at least: A $1,000,000 of assets that it invests on a discretionary basis B $10,000,000 of assets that it invests on a discretionary basis C $100,000,000 of assets that it invests on a discretionary basis D $1,000,000,000 of assets that it invests on a discretionary basis

Answer 1

C) $100,000,000 of assets that it invests on a discretionary basis

Step-by-step explanation:

For an institutional investor to qualify as Qualified Institutional Buyer (QIB) under Rule 144A of the Securities and Exchange Commission (SEC) it must:

1. manage at least $100 million worth of securities
2. the securities must come from issuers that are not affiliated with the institutional investor

In case of banks or savings and loans institutions, Rule 144A requires them to have a net worth of at least $25 million.