Financial Services

Placement of shares

Placement of Shares refers to the sale of shares of the company to the investors and institutions that are selected by the company which generally includes the banks, mutual fund companies, wealthy individual investors, insurance companies, etc rather than issuing it in the open market for the public as a whole and the same generally have few regulatory requirements. A private placement has minimal regulatory requirements and standards that it must abide by. The investment does not require a prospectus and, quite often, detailed financial information is not disclosed.