________ placement of securities restricts the ability to resell the securities,thus investors often require ________ interest rates on bonds issued in this manner.
A)Private; lower
B)Private; higher
C)Public; higher
D)Public; identical

Question

Quizplus · Accepted Answer

Private placement of securities restricts the ability to resell the securities, as they are not registered with regulatory authorities, and are sold to a limited number of investors. This increases the risk for investors, which is reflected in higher interest rates. Therefore, investors often require higher interest rates on bonds issued through private placements. Public placement of securities, on the other hand, allows for wider resale opportunities and is registered with regulatory authorities, leading to lower risk and lower interest rates.

________ Placement of Securities Restricts the Ability to Resell the Securities,thus