Which of the Following Is an Advantage of a Public

question 42

Multiple Choice

Which of the following is an advantage of a public bond issue over private placement?

• A)It can be tailored to the particular situation.
• B)It is less costly to issue.
• C)It does not need to be registered with the securities commission.
• D)It is freely tradable on the bond market.
• E)It is sold to a small group of investors.

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Definitions:

Ask Price

The minimum price a seller is willing to accept for an asset or security.

Sell

The act of transferring ownership of a security or asset from a seller to a buyer in exchange for cash or other forms of payment.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Dark Pools

Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.