What is the difference between a private and a public offering?

A private offering is when a company or individual offers securities to a limited number of people in a specific jurisdiction. This offering is usually done without any registration of the securities being offered with the state. On the other hand, a public offering is when a company or individual offers securities to the general public. These offerings must be registered with the state and the company or individual must disclose financial information about the company or individual and the securities being offered. In California, private offerings are subject to investment fraud law. This includes an exemption from the requirement of disclosure under the California Corporate Securities Law of 1968. Private offerings are also exempt from the registration requirements of the law, meaning the company or individual offering the securities is not required to file with the state. In contrast, public offerings must be registered with the California Department of Corporations before the securities can be offered to the public. This registration requires disclosure of financial information that must be given to potential investors. Public offerings are also subject to the requirements of the California Corporate Securities Law, which limits the circumstances in which certain securities can be offered to the public. Overall, private offerings are offered to a limited number of people and must comply with the requirements of investment fraud law in California. Meanwhile, public offerings are offered to the general public, must be registered with the California Department of Corporations and must comply with the requirements of the California Corporate Securities Law.

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What is the difference between a private and a public offering?

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