What is a private placement?
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What is a private placement? |

Explanation
Private placement offers securities to accredited investors through financial institutions.
It is a faster way of inviting applications through issue of a memorandum and not a full fledged prospectus. So it requires less formalities, time and floatation cost as compared to general public offer.
A company can offer private placement only after the approval of existing shareholders by passing a special resolution in the general meeting.
Verified Answer
Private placement is the offer of company's securities to a specified group of individuals through financial institutions rather than inviting the public at large.