The sale of a security to a small set of qualified institutional buyers is called a

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A private placement is a sale of securities to a limited number of qualified institutional buyers, such as banks, insurance companies, or pension funds, without being offered to the public. Depositary receipts and fixed income securities can be sold through public offerings or private placements, but they do not specifically refer to sales to a small set of qualified institutional buyers.

The Sale of a Security to a Small Set of Qualified