Difference between Public offering and Private Placement
Methods of Issuing Securities
Public Offering is one of the methods of selling securities to the general public where there are a large number of investors. Private Placement is one of the methods of selling securities directly or privately to a few/a group of individual investors or institutional investors.
Difference between Public offering and Private Placement are as follows:
S.No. |
Public Offering |
Private Placement |
| 1. | Public Offering is one of the methods of selling securities to the general public where there are a large number of investors. | Private Placement is one of the methods of selling securities directly or privately to a few/a group of individual investors or institutional investors. |
| 2. | Generally, large scale company raises fund through public offering. | Generally,small scale company raises fund through private placement. |
| 3. | In case of public offering,investment banker acts as a middleman which hiring together suppliers and users of long term fund in capital market. | In case of private placement,there is no middleman as it is the direct negotiation between issuing company and the investors. |
| 4. | Under public offering, floatation cost is included as there is the need of underwriter. | Under private placement, floatation cost is excluded as there is no need of underwriter. |
Similarly ,other Related topics:
- Fixed Asset turnover ratios
- Assets Turnover ratio
- Direct Financing Lease
- Different Types of Lease
- Need For Microfinance
- Wells Fargo in USA
- Open Ended Vs Close Ended Mutual Funds
- Liquidity Ratios
- Theories of term structure of interest rate
- Determinants of Market interest rate
- Difference between Nominal and Real Interest rate
- Cash Reserve Ratio Vs Statutory Liquidity Ratio
- Difference between Forward Contract and Future Contract
- Difference between ROA and ROE
- Federal Deposit Insurance Corporation
- Difference between Fixed Deposit and Certificate of Deposit
You may also like:
Read this also:
Difference between Public Limited(Public Ltd ) and Private Limited(Pvt Ltd) Company | Finance
Difference between Traditional Financing and Micro-Financing
Difference between IPO and FPO – Investment Decisions | Finance
Investment Process – Investment Decision and Investing environment| Finance
Direct Financing Lease| Lease Financing
Preferred Stock Disadvantages| Corporate Finance
I am sure this post has touched all the internet visitors, its really really fastidious
piece of writing on building up new website. I absolutely love your blog..
Pleasant colors & theme. Did you create this site yourself?
Please reply back as I’m wanting to create my own personal blog and would like to find out where you got
this from or what the theme is called. Thank you! It is perfect time to make some plans
for the future and it’s time to be happy. I’ve read this post and if I
could I wish to suggest you few interesting things or suggestions.
Maybe you can write next articles referring to this article.
I desire to read even more things about it! http://goodreads.com