Private Placement Market
Want to learn about the private placement market and its associated risks? You’re in the right place.
What is the Private Placement Market?
A private placement is when a company issues securities privately rather than offering them to the public through a stock exchange. Securities offered through private placement investments may be one of many investment types, including shares, bonds, investment funds, limited partnership or trust units, and interests in land or mortgages.
Types of Exemptions in the Private Placement Market
Companies using the private placement market to raise capital typically graduate from one exemption type to another as they grow. There are five exemptions that private companies typically use to sell securities to investors.
Evaluating a Private Company
Always do your homework before deciding on an investment. Without the prospectus or ongoing disclosure that regulators require from public companies, you will have to gather information about the company to make an informed decision yourself.