The downside to a private placement transaction is that, it does not require the fees and expenses associated with an SEC registration.

Question

Quizplus · Accepted Answer

The statement is incorrect. The downside to a private placement transaction is that it does not offer the same level of transparency and regulatory protection as an SEC-registered offering, not that it avoids fees and expenses. In fact, private placement transactions may still come with fees and expenses for legal and other services.

The Downside to a Private Placement Transaction Is That, It