What is a private placement memorandum?

Private placement memorandum (PPM) is a legal document provided to potential investors when selling stocks or other securities of enterprises. It is sometimes referred to as issuing a memorandum or issuing a document. When securities are not registered under applicable federal or state laws, but are sold under one of the registration exemptions, PPM is used for "private" transactions. PPM describes the company that sells securities, the terms of issue and investment risks. The disclosure contained in PPM varies according to the registration exemption used, the target investor and the complexity of the issuance terms.

General idea:

"Private Placement Memorandum" (PPM for short) is a legal document provided to future investors when they sell stocks or other securities. It is sometimes called the offering memorandum (prospectus) or the sales document (fund). "PPM" is usually used for "private (own)" transactions, when these securities are not registered under applicable federal or state laws, but are registered as tax-free sales. Among other general matters, this PPM also describes the company's securities sales, offer terms and investment risks. According to the exemption registration, target investors and complicated terms used, the disclosure items included in "PPM" are also different.