Definition of Private Placement

Financial Terms Beginning with P

What is a Private Placement

A private placement is the direct sale of a security to a pre-selected group of investors and institutions without the requirement for a registration with national regulators. Investors that are invited to participate include accredited investors, banks, insurance companies, mutual funds, pension funds and other qualified investors.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Capital Market

Investment Banking

Private Equity

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