The-definition.com

Definition

Private placement

Private placement is a variation of the IPO in which there is a direct sale of an issue of securities to a large institutional investor. When a private placement is initiated, there is no public offering, and no prospectus is prepared.

Definition 2.

A private placement is the sale of a security to a small set of a qualified institutional buyers. The investors are traditionally insurance companies and investment companies. Since the securities are not registered for sale to the public, investors have typically followed a “buy and hold” policy.

Share it:  Cite

More from this Section

  • Brand
    A brand is the set of attributes positive or negative- that people associate with a company. ...
  • Corridor Principle
    Corridor principle is which states that once an entrepreneur starts a firm and becomes ...
  • Corporate venture capital
    Corporate venture capital is a type of capital similar to traditional venture capital, ...
  • Physical distribution system
    Physical distribution system is the activities that take place as the goods move through ...
  • Founding team
    Founding team is referred as a team of individuals chosen to start a new venture; has ...