Methods Of Sale/Financing
Public Offering Method of Sale
Under a public offering, an underwriter purchases bonds from an issuer with the intent to resell the bonds to investors. Sales can be made to institutional investors such as mutual funds or insurance companies, or to individual investors, known as retail investors.
Direct Placement Method of Sale
A direct placement is a sale of a new issue of securities directly to an investor or a small group of investors without a public offering. Directly placed securities do not require SEC registration.