Which of the following is not an advantage of private placement?
A) No expensive registration process
B) Lower interest rates
C) More flexibility in negotiation
D) No extensive public relations requirements

Question

Quizplus · Accepted Answer

Private placement does not guarantee lower interest rates as it depends on various factors such as the borrower's creditworthiness, market conditions, and the type of financial instrument being issued. Additionally, private placement may even sometimes have higher interest rates compared to public offerings due to the higher risk associated with private investors. Therefore, option B is not an advantage of private placement.

Which of the Following Is Not an Advantage of Private