Business development companies are known as BDCs. It is a 1940 Act-registered investment company that trades and is listed just like any other stock.
<h3>What is BDC?</h3>
A closed-end fund called a "business development company" (BDC) invests in growing and struggling businesses. Retail investors can invest in many BDCs, which are listed on public markets. High dividend rates and some possibility for capital growth are offered to investors by BDCs.
A BDC often invests in private enterprises using equity securities or debt (loans). It looks for ways to produce current income and/or capital gains that are tax-efficient. BDCs are regulated in a similar way to mutual funds, but they often use leverage to produce excess returns.
A BDC is a closed-end fund that must allocate at least 70% of its assets to long-term debt and/or equity investments in privately held or thinly traded public companies in order to generate current income and/or capital gains.
Business development companies are known as BDCs. It is a 1940 Act-registered investment company that trades and is listed just like any other stock. It makes "private equity" investments in privately held start-up companies as well as mid-sized businesses rather than making investments in securities.
Hence, The correct option is C.
What does a BDC invest in?
A. Publicly-held small-cap companies
B. Publicly-held mid-cap companies
C. Privately-held small-cap and mid-cap companies
D. Privately-held large-cap companies
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