The Choice of Whether a Private Placement or a Public

question 38

Essay

The choice of whether a private placement or a public bond issue is undertaken depends on many factors. Three elements of primary concern are registration, interest rates and covenants. How do these affect the choice and why might a private placement be chosen?

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Definitions:

Order Paper

Order Paper is a document listing the business or order of events to be discussed in parliamentary or legislative sessions.

Bearer Paper

A negotiable instrument or document that entitles the holder or bearer to rights or property stated in the document, without requiring endorsement.

Indorsement

The act of endorsing a check or bill of exchange to transfer the right to cash or deposit to someone else.

Nonmanipulated Independent Variable

An independent variable for which condition assignment is determined by a characteristic of the participant.