Because private investors are willing to take greater risks than banks,they are more willing to finance deals through private placements than are banks.

Question

Quizplus · Accepted Answer

Private investors are often willing to invest in riskier ventures since they are seeking higher returns on their investments. Banks, on the other hand, are more risk-averse and may be less willing to finance such ventures. As a result, private placements may be a more attractive option for companies looking to secure funding from these types of investors.

Because Private Investors Are Willing to Take Greater Risks Than