Private Placement Program | Programs for Private Placement Investments

Private Placement Program

Private Placement Programs | Definition

Issues those are exempt from public-registration provisions in section 4-2 of the Securities Act of 1933. Hedge fund shares are generally offered as private placements, which are typically offered to only a few investors, rather than the general public. They must meet the following criteria:

  • The issuer must believe that the buyer is capable of evaluating the risks of the transaction.
  • Buyers have access to the same information that would appear in the prospectus of a publicly offered issue.
  • The issuer does not sell the securities to more than 35 parties in any 12-month period.
  • The buyer does not intend to sell the securities immediately for a trading profit.
Definition Source: Hedgeco

Related to Private Placement Program:

Tags: Private Placement Program, Private Placement Investments, private placement, Private Placement Programs, What is a private placement memorandum, equity private placement, private placement securities, private placement offering

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Hedge Fund Videos | 30+ Free Videos on Hedge Funds