What is a public offering in finance?

A public offering in finance refers to a method by which a company can raise capital by selling securities, such as stocks or bonds, to the general public. This process allows any interested investor, regardless of their wealth or institutional status, to purchase shares or bonds directly from the issuing company. By making the offering available to all investors, the company can attract a larger pool of capital, thus providing more resources for business expansion, development, or other financial needs.

Public offerings are typically conducted through a regulated process that involves filing necessary documentation with the appropriate regulatory bodies, like the Securities and Exchange Commission (SEC) in the United States. This ensures transparency and provides potential investors with the information needed to make informed investment decisions.

The other options describe security offerings that are not accessible to the broader public. Options that limit participation to wealthy or institutional investors, as well as private sales, do not fit the definition of a public offering.