Why might a corporation want to raise long-term capital through a private placement rather than a public offering?

Question

Social Studies

Leila Douglas

1 September, 08:59

Why might a corporation want to raise long-term capital through a private placement rather than a public offering?

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Answers (1)

Know the Answer?

Keshawn Harper · Answer 1

It has less burdensome requirements, reduced cost and time, the company still remains a private entity

Explanation:

A corporation might want to raise long-term capitals through private placement rather than a public offering for a number of reasons which includes;

1. It has less burdensome requirements

2. Reduced cost and time

3. The company still remains a private entity