The main difference between direct private long-term debt ﬁnancing and public issues of debt is
that registration costs are lower for direct placements.

Question

Quizplus · Accepted Answer

Direct private long-term debt financing involves directly negotiating and issuing debt securities to private investors, bypassing the need for registration with regulatory authorities. This significantly lowers the registration costs compared to public issues of debt, which need to comply with strict regulatory requirements and involve substantial registration costs. Therefore, the statement is true.

The Main Difference Between Direct Private Long-Term Debt ﬁNancing and Public