Public offerings of newly issued securities normally raise larger amounts of money than private placements.

Question

Quizplus · Accepted Answer

Public offerings involve selling securities to a large number of investors through the open market, whereas private placements involve selling securities to a small group of investors without the involvement of public exchanges. This makes public offerings more accessible to a larger pool of potential investors, ultimately resulting in the raising of larger amounts of money.

Public Offerings of Newly Issued Securities Normally Raise Larger Amounts