Private placement is a form of international bond issuance.
When bonds are issued in a private placement, the fundraiser does not have to sell the bonds to the public, but only be subscribed by institutions such as banks, insurance companies or trust investment companies.
Private placement bond issuances are usually in registered form, allowing issuers to disclose less about their operations.
Private placement bonds cannot be listed and circulated, and they cannot be transferred within a certain period of time. After maturity, they can only be transferred to the above-mentioned investment institutions.
Typically, private placement bond issuances are small, often under $1 million.
Extended information The characteristics of "private equity" are: first, "private equity" investments basically have no liquidity; second, the reason why it is called "private equity" is that investors cannot be recruited publicly and cannot be sold on the open market.
You can sell shares on the INTERNET, etc.
Third, investors in private equity can be angel investors or VCs; they can be individuals or institutional investors.
But no matter who it is, he must be an Accredited Investor.
After approval by the national securities industry management department, the lead operator of this activity is allowed to raise funds from the public to attract investors to join the partnership. This is the issuance of public funds, which is now a common fund; if it is a private partnership investment activity,
, which has established a complete contract between investors but has not yet been recognized by the relevant laws and regulations of the national financial industry supervision, is a private equity fund.