What Are Private Placement Securities?

Private placement securities are securities issued to specific minority investors. Private equity securities are generally issued in three categories: one is the company's shareholders and employees; the other is the financial institution that has a fixed relationship with the company; In some countries, the legal limit on the number of private equity investors has made the boundaries between public and private equity clearer. Due to the small number of investors in private equity securities and the general knowledge of the issuer's creditworthiness, investors such as shareholders, employees and financial institutions can easily obtain relevant financial information of the issuer. Therefore, private equity issuers do not have to disclose internal information to the public And related materials, it is not necessary to submit an issuance registration report to the competent authority, and it is not necessary to obtain a rating of securities credit rating. While exempting these restrictions, there are additional restrictions on the issuance of private equity securities. Specific regulations vary from country to country. Due to the specific and limited number of applicants for private equity securities, as well as the relatively small number of issuances, private equity securities are generally handled by issuers themselves. Issuing intermediaries only perform auxiliary or service work. ^[1]