Private Placement In the language of the federal securities laws, a sale of securities "not involving a public offering." Generally, a negotiated sale between a corporation and one or a few investors. An investment banker or other agent may be involved for a fee. The securities laws dictating use of a prospectus do not apply to private placements. Consequently, private placements are subject to a web of other regulations and decisions. Raising of capital via private rather than public placement. The result is the sale of securities to a relatively small number of investors.
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