Private placement means that several rich people pool their money to concentrate on stock trading. Generally, private equity funds are for the rich, and the standard is generally at least 2 million per account. Private placement is generally hidden. After all, raising funds for stock trading is a matter for a few rich people in the upper class, and it is impossible for many people to know the specific situation.
On the Internet, the so-called private placements we encounter are all huge sums of money to boost bull stocks, and paying members are basically liars. Cats need to remind that private equity funds are not actively looking for rich people, but rich people join a private equity fund through the relationship of another rich person. So don't trust all the private placements you see online. Nowadays, many swindlers cheat money under the banner of private placement, because private placement is difficult to join, and there is a capital threshold. The success rate of private placement is generally greater than that of Public Offering of Fund.
Public Offering of Fund or Private Equity Fund?
Compared with Public Offering of Fund, the freedom of private investment is higher. Facing the general public, Public Offering of Fund set many rules and self-discipline at the beginning of its establishment. For example, investment should be diversified, and one or two stocks should not be concentrated. Private placement can buy whatever it wants and buy as much as it wants. Besides, how many positions must Public Offering of Fund keep? For example, index funds should maintain a certain investment scale regardless of the bull market and bear market. Private equity funds can invest at will, and if the market fails, they can all quit.
The most important reason for the high success rate of private equity funds in stock trading is that most private equity funds adopt the method of controlling the stock market to raise the stock price, and then cooperate with the media to release good news for shipment.