private placement


The sale of securities directly to an institutional investor, such as a bank, mutual fund, insurance company, pension fund, or foundation. Does not require SEC registration, provided the securities are bought for investment purposes rather than resale, as specified in the investment letter.

Use private placement in a sentence

The private placement nature of the new relationship meant that the communication between the institution and the individual was optimal.

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When he was eager to transfer some of his corporate assets, Zeke decided on a private placement with Citi Bank so that he could avoid some unwanted red tape.

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After the mutual fund got a private placement, the executive board had a meeting after which they decided to invest it in a certain stock that was doing really well.

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qualified institutional investor issue