Private Placement defined: Private placement is a capital raising method that sells securities of a private company to institutional or accredited investors. Private placements do not require filing with the Securities and Exchange Commission and detailed financial information is not disclosed. Private placements is offered to a small number of investors and is usually a direct sale of securities between the issuer and the investor. Note that a private placement can also be done by a public company. For example, a public firm may do a private placement to issue new bonds, which is the typical case of large “private placements.”
Above is a definition for “Private Placement” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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