Which of the following is an advantage of a public bond issue over private placement?

Question

Quizplus · Accepted Answer

One advantage of a public bond issue is that the bonds are freely tradable on the bond market, which can increase their liquidity. Private placements are typically sold to a limited number of investors who may not have the ability to resell the bonds easily. A is incorrect because public bond issues can be more costly due to the expenses associated with registration and marketing. B is incorrect because private placements can be tailored to the specific needs of the issuer and investors. D is incorrect because all securities offerings must be registered with the appropriate regulatory agencies, including bond issues.

Which of the Following Is an Advantage of a Public