Final answer:
A private placement occurs when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors.
Step-by-step explanation:
The process described in the question is known as a private placement. In a private placement, a company sells its stock and other corporate securities directly to insurance companies, pension funds, or large institutional investors.
This method of selling securities is different from a public offering, where the company sells its stock to the general public through a stock exchange.
Private placements are often used by companies that want to raise capital quickly and avoid the stringent regulatory requirements associated with public offerings. They provide a more direct and targeted approach to raising funds from specific investors.