Question

Most businesses raise money by selling their securities in aSelect one:a. public offering.b. private placement.c. direct placement.d. stock exchange.

Answer 1

Answer: Public offering

Explanation: In a public offering  the right of ownership in a small portion of the company is made to the general public in form of shares for raising funds to operate different business activities.

Public offering is done in primary market and the transactions involves only issuing party and the initial investor, whereas in a secondary market transactions are done by existing investors with the intent of capital gains on sale of  shares.

Answer 2

When a business needs to make money by selling securities, it usually does so at a a. Public offering

A Public offering:

• Refers to when a company sells its own stock to the public
• Can be either primary or secondary
• Is usually done to raise funds for expansion

When a business owns its shares and wants to make money from them, it can sell them in a public offering. After people buy them, they are then able to trade these shares in stock exchanges.

In conclusion, companies raise money by selling their securities at public offerings.

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