Which one of the following statements comparing debt versus equity offerings is correct?

Question

Quizplus · Accepted Answer

Debt offerings are indeed more likely to be privately placed than equity offerings. This is because debt can often be sold directly to institutional investors or through private placements, bypassing the public markets, which is less common with equity offerings. Equity offerings typically involve selling shares to the public, which dilutes existing ownership, whereas debt does not involve selling ownership stakes.

Which One of the Following Statements Comparing Debt Versus Equity