equity placements

Definition

A method for financing a growing business without necessarily taking a company public. The company issues stock to selected private investors in exchange for venture capital to continue operations or fund growth and expansion into the marketplace. Equity placements can also be used to restructure a company's debt as an alternative to obtaining bank loans. Making equity placements may be a first step on the path to taking a company public. Public entities with stock registered on a national market can still do private equity placement with the approval of the majority of control shares.
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equity participation loan equity premium puzzle (EPP)