What is meant by Private Placement?
What is meant by Private Placement?
Private placement refers to the private equity provided by thrid-party financal investors in the form of equity capital. Private limited companies are prohibted from inviting the public to subscibe for any shares of the company. Even public limited conpanies cannot go public without 'track record'. In such situations private placement is the method adopted by promotors to meet the funding requirements.
Agree with Jayashree
Private placement means offer/sale of securities by the issuing company directly to an investor rather than an offering through the public exchange markets. A private placement does not have to be registered with the Stock Exchanges.
Regards
| Originally posted by : Ajay Mishra | ||
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Agree with Jayashree Private placement means offer/sale of securities by the issuing company directly to an investor rather than an offering through the public exchange markets. A private placement does not have to be registered with the Stock Exchanges. Regards |
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