Which of the following is a disadvantage of making a public stock offering through a Small Company Offering Registration (SCOR)?
A)Every state in which the offering is made must approve it.
B)A limited secondary market for the securities may limit investors' interest in the offering.
C)A company can raise no more than $1 million in a 12-month period.
D)All of the above

Question

Quizplus · Accepted Answer

A) Every state in which the offering is made must approve it - This is a disadvantage because it can be time-consuming and costly to obtain approval from every state and some may have different requirements.
B) A limited secondary market for the securities may limit investors' interest in the offering - This is a disadvantage because investors may be hesitant to invest in a company if they are not able to easily buy or sell their shares on a secondary market.
C) A company can raise no more than $1 million in a 12-month period - This is a disadvantage because it limits the amount of capital a company can raise through a SCOR offering.

Which of the Following Is a Disadvantage of Making a Public