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

Question

Quizplus · Accepted Answer

Private bond placement provides greater flexibility in negotiating terms compared to public offerings. This is because private bond placements are negotiated directly between the issuer and the investor, without the need for SEC registration, which can be costly and time-consuming. Private bond placements also offer more confidentiality and control over disclosure of financial information. However, private bond placements may result in higher interest costs due to the lack of competitive bidding, which can drive down interest rates in a public offering.

Which of the Following Are Advantages to Private Bond Placement