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

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