Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- PRIVATE OFFERING (PLACEMENT)
A direct sale, by the issuing firm, of newly issued securities to a small group of investors. There are a number of advantages of utilizing a Private Offering: 1. Used to include Angel Investors or develop seed capital 2. More control over the offering process 3. Ability to make acquisitions with stock or create equity partnerships 4. Creates avenue for future public company objective 5. Less regulatory filing requirements 6. Less expensive avenue to raise capital 7. Increased ability to obtain financing 8. May allow most efficient financial and estate planningBack