A private placement is a primary market issue of securities negotiated between the issuing corporation and a small group of accredited investors.

Question

Quizplus · Accepted Answer

A private placement is a type of primary market issue where securities are offered and sold directly to a limited number of accredited investors, rather than the wider public. The terms of the offering are typically negotiated between the issuer and the investors, and the securities are not registered with the SEC.

A Private Placement Is a Primary Market Issue of Securities