Financial Industry Regulatory Authority (FINRA) Practice Exam 2025 - Free FINRA Practice Questions and Study Guide

The correct answer highlights that both public and private offerings of corporate bonds are permissible under U.S. securities regulations. Corporate bonds can be issued through a public offering where the bonds are sold to the general public and are typically registered with the Securities and Exchange Commission (SEC). This process allows the bonds to be traded in the secondary market, providing liquidity to investors.

Additionally, companies may opt for private offerings, where the bonds are sold directly to a select group of investors, often institutional, without the same disclosure requirements as public offerings. This route can be less costly and quicker due to reduced regulatory burdens. Therefore, the flexibility for corporations in choosing their method of offering is essential for financing strategies, making the statement that both public and private offerings are permissible accurate and comprehensive.

The other choices inaccurately constrain the options available to corporations, overlooking the combination of methods available for raising capital through bond offerings.