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

Question

Quizplus · Accepted Answer

Public bond issues are freely tradable on the bond market, which means that they can be bought and sold by a wider range of investors. This can create greater liquidity in the bond issue, making it easier to raise financing and potentially lowering borrowing costs. Private placements, on the other hand, are typically sold to a small group of investors, which can limit liquidity and make it harder to sell the bonds if needed. While there may be advantages to tailoring the bond issue to a particular situation or avoiding registration with the securities commission, these are not necessarily advantages over private placement specifically.

Which of the Following Is an Advantage of a Public