Private Placement

Private placement refers to the sale of securities—like stocks or bonds—directly to a select group of investors rather than through a public offering. This method is often used by companies to raise capital without the extensive regulatory requirements of a public market. Investors typically include institutional investors, wealthy individuals, or accredited investors. Private placements can be attractive for companies seeking quicker funding and for investors looking for unique investment opportunities that may offer higher returns, albeit with greater risk, due to less public disclosure and oversight.