Question
Explain the difference between public debt offerings and private debt offerings. Provide a recent example of corporations using each type of offering. I am not
Explain the difference between public debt offerings and private debt offerings. Provide a recent example of corporations using each type of offering.
I am not sure I have explained the offerings right here or if debt and offerings are different. below is what I have so far.
Private Debt Offering
A private debt is a debt that is received by an individual or private business. This can be in the form of personal loan, credit cards, business loan or corporate bond. A private debt can have its risks if payments fall behind. As often for an individual this is a loan from a family member or friend. Such as a Mother loaning a daughter money for a car.For an individual credit cards are also a risk as often they can have interest rates the individual doesn't pay attention to. These can make small debts turn large rather fast. And the credit card company will come looking for their money through mail and collection calls. This is why you see more and more secured credit cards lately as they help protect the credit card company from a private debt loan going south. With the secured card they are at least guaranteed that amount back.(Meakin, 2017)
Public Debt Offering
A public debt is also called national debt. And it is the sum of all the governments incurred debts. This included not only the debts of the direct government but the agencies that fall under it.Even though this debt is called public it is seen as government or national debt by countries that look at the country in question. (Meakin, 2017)
Examples of private and public debt
Reference
Meakin, E. (2017, November 14). The Difference Between Public and Private Debt. Retrieved
December 17, 2018, from https://fleximize.com/articles/000543/public-and-private-debt
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started