Which of the following is an advantage to private bond placement over public offerings?
A) Higher interest costs
B) Greater flexibility in negotiating terms
C) Higher SEC registration fees
D) Lower interest costs

Question

Quizplus · Accepted Answer

Private bond placement offers greater flexibility in negotiating terms compared to public offerings. This is because private placements are typically done between a small group of investors and the issuer, allowing for more personalized negotiations. Public offerings, on the other hand, must follow strict SEC regulations and involve a larger pool of investors which can limit negotiating power. Higher interest costs and SEC registration fees are disadvantages of private bond placement.

Which of the Following Is an Advantage to Private Bond