Compared with public offering, private offering is defined as public offering and private offering, or public offering and private offering according to different securities issuance methods and whether securities are issued to unspecified public.

The "private fund" or "underground fund" often mentioned in the financial market is a collective investment that does not publicize publicly and raises funds privately from specific investors. There are basically two ways, one is a contractual collective investment fund based on signing the entrusted investment contract, and the other is a corporate collective investment fund based on * * * contributing shares to establish a joint-stock company.

There are two main modes of operation of private equity funds.

The first is the guarantee. The foundation gives the guaranteed funds to investors and sets the bottom line accordingly. If it falls below the bottom line, the operation will be automatically terminated and the guaranteed funds will not be returned.

Second, customers can receive account numbers (that is, customers only need to give their account numbers to private equity funds). If the account number falls below 65,438+00%, the customer can automatically terminate the agreement and divide the part with profits exceeding 65,438+00% according to the agreed proportion.