|
Private Placement When securities are sold to
a bank, mutual fund, foundation, pension fund, any type of insurance
company, or any other institutional investor. This purchase must be
classified as being an investment, rather than buying it in order to
make a resale. Also, since this type of sale does not need SEC registration,
the investor does not have to disclose any of the securities' financial
information. By privatizing the ownership of the company, many different
avenues can be taken in order for the new owner to maximize the profits
of the security, without having to worry about outside sources interfering
in the process.
|