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Write 7 pages with APA style on Private Placements and Public Offerings. When it comes to securities, two types of basic methods are used by companies to offer those to investors. One of the methods u
Write 7 pages with APA style on Private Placements and Public Offerings. When it comes to securities, two types of basic methods are used by companies to offer those to investors. One of the methods used for this is called Initial Public Offering (IPO) or Public Offering. In this particular method securities are offered for sale to general public. Any one can be an investor in the case of initial public offering. Actually it is the first time when a corporation starts to offer a registered security to public. This practice helps companies to get immediate cash to increase their equity base along with positively affecting the stock value appreciation (Initial Public Offering (IPO).
Private Placement is the other method used to offer securities. The basic difference in this particular method as compared to the other one is about selling the shares without the involvement of intermediary of a stockbroker.
Both these methods are used in real world to achieve different types of objectives. Actually, the use of a particular method is directly related to the situations being faced by a corporation. By contemplating more on the details related to both these methods, it becomes quite evident that there are quite a few differences, advantages and disadvantages of using a particular method. A critical comparison of both these methods will help you to understand those advantages and disadvantages in a much better way.