Respuesta :
Private placement of securities involves a non-public sale of securities to a limited number of investors.
The private placement is a sale of stock bonds given to pre-selected investors and organizations rather than opening it to the market for the public. That's why it is a non-public sale. All those pre-selected investors can be new or existing or both for placing bonds privately.
The main objective of this private placement is to raise capital in order to grow and develop with negligible glare. This is regulated and monitored by U.S. Securities and Exchange Commission. It is a kind of alternative to an initial public offering (IPO) where investors invite wealthy individual investors, and mutual funds companies to come and participate in a private placement program.
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