What is private placement?
private placements are offerings used by smaller companies to raise capital under reg d. this regulation allows companies to forgo registration under the securities act of 1933 as long as the private placement offerings are not solicited and are sold to only accredited investors that meet a certain criteria of experience and net worth.
When securities such as a new issue of stock is sold directly to a small amount of investors rather than publicly on a stock exchange.
http://www.investopedia.com/terms/p/priv...
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