____ are beneficial because they may reduce transaction costs. However, MNCs may not be able to obtain all the funds that they need.

Question

Quizplus · Accepted Answer

Private placements are beneficial because they involve the issuance of securities to a small group of investors, which reduces the transaction costs associated with a public offering. However, because the group of investors is limited, MNCs may not be able to obtain all the funds they need. Domestic and global equity offerings and global debt offerings may involve larger numbers of investors, but may also have higher transaction costs.

____ Are Beneficial Because They May Reduce Transaction Costs