Equity Capital Markets
Private Placement
Definition
What is Private Placement?
A sale of securities to a limited group of selected investors rather than the general public.
Example in practice
How This Looks in Practice
A pension fundA pool of retirement assets invested on behalf of members or beneficiaries. buys newly issued sharesShares that a company has formally created and allocated to shareholders. through a private placement.
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Related Terms
Equity Capital Markets
Initial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.
Equity Capital MarketsPrimary Offering
A sale of newly issued securities in which the issuer receives the proceeds.
Equity Capital MarketsSecondary Offering
A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.
Corporate ActionsRights Issue
An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.