The sale of securities to a relatively small number of select investors as a way of raising capital. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Private palcement is the opposite of a public issue, in which securities are made available for sale on the open market.
Since a private placement is offered to a few, select individuals, the placement does not have to be registered with the Securities and Exchange Commission. In many cases, detailed financial information is not disclosed and the need for a prospectus is waived. Finally, since the placements are private rather than public, the average investor is only made aware of the placement after it has occurred.
An investor should consider each vehicle's investment objectives, risks, charges and expenses carefully before investing. Please read the prospectus or other offering documents carefully before investing. For this and more complete information about the delivery vehicles listed above, visit the appropriate website.