Equity Capital Markets

Private Placement

Definition

What is Private Placement?

A sale of securities to a limited group of selected investors rather than the general public.

Example in practice

A pension fund buys newly issued shares through a private placement.

Keep learning

The first public sale of a private company's shares, after which the shares may trade on an exchange.

A sale of newly issued securities in which the issuer receives the proceeds.

A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

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