Glossary Terms

private placement

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Private placements are offers and sales of securities directly to a select, private group of investors rather than through a public offering.

Private placements are used by issuers to sell securities and raise capital more quickly, with fewer regulatory requirements, and at a much lower cost than a public offering.

In the United States, federal securities laws—including the Securities Act of 1933 and the SEC’s Regulation D—and state securities laws provide the legal framework for private placements.