Final answer:
The correct answer is option c. Rule 144A facilitates private placements of securities between qualified institutional buyers, allowing for quick capital raising without the need to register with the SEC.
Step-by-step explanation:
Rule 144A is a regulation enforced by the United States Securities and Exchange Commission that deals with the resale of securities primarily in private placements. It is designed to facilitate the more efficient sale of securities to qualified institutional buyers. According to this rule, private placements can be sold to these institutional investors without the need to register them with the SEC, assuming certain conditions are met. These institutional investors are entities that own and invest on a discretionary basis a substantial amount of securities, qualifying them under Rule 144A. So, the correct answer to the question is C) Institutional investors.
Accredited investors and venture capitalists may also participate in private placements, but Rule 144A specifically facilitates transactions with institutional investors. This type of transaction allows companies to raise capital more quickly than they might through a public offering, and institutional investors can negotiate better terms due to their purchasing power and sophistication.