Issue of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and high net worth individuals, is called?
Private placement is issuance of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and high net worth individuals. Private Placement is arranged through a merchant/investment banker, who brings together the issuer and the investor(s). As securities are allotted to a few investors and the general public does not have much stake in it, the securities offered in a private placement are exempt from the public disclosure regulations.
