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

The difference between a public offering of securities and a private offering of securities is based upon the type of investors involved in the transaction. A public offering of securities involves securities being offered to the general public via a stock exchange or other public market. This means that anyone, including individual investors, can purchase these securities. A private offering of securities, however, involves securities being offered only to select investors, such as accredited investors or institutional investors. Private offerings often involve special terms and conditions, such as the right of first refusal or the right to complete a subsequent purchase. Additionally, private offerings can often involve fewer regulatory and disclosure requirements than public offerings. In the state of Wisconsin, companies that wish to do a public or private offering of securities may need to register with the Wisconsin Department of Financial Institutions and comply with the Wisconsin Uniform Securities Law. The law also requires that any public offering of securities in the state must be registered with the Department of Financial Institutions and be in compliance with federal securities law. Furthermore, private offerings of securities in Wisconsin may also have to comply with certain aspects of the Wisconsin Uniform Securities Law.

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

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