The principal disadvantage of a public offering is that it provides the offering company with a tremendous source of interest-bearing capital for growth and expansion, paying off debt, or product development.

Question

Quizplus · Accepted Answer

The principal disadvantage of a public offering is not about providing a source of capital, but rather it involves significant costs, regulatory requirements, and the need for transparency and disclosure to the public, which can be burdensome for the company.

The Principal Disadvantage of a Public Offering Is That It