Explanation:

• Option A is incorrect because private equity securities are typically issued to institutional investors through non-public offerings, such as private placements, and are not listed on public exchanges. Consequently, there is no active secondary market for these securities.

• Option B is correct because private equity securities lack market-determined quoted prices, are highly illiquid, and require negotiations between investors for trading.

• Option C is incorrect because financial statements and other critical information necessary for determining the fair value of private equity securities are often difficult to obtain. This is due to the issuing companies not being mandated by regulatory authorities to disclose such information.