What is private placement of shares?

Private Placement is a term that describes when a company sells part of its ownership in the form of stocks or bonds. The Securities Act of 1933 and the Securities Exchange Act of 1934 set up rules for the issuance and sale of these securities to ensure that investors receive sufficient information, protection, and remedies. In general, companies can offer their stock to the public by going through an Initial Public Offering (IPO). An IPO is generally large, expensive, and time-consuming. Therefore, many companies choose to make a private placement instead.

securities lawyer free consultation

Private placements are most commonly done in one of two ways. The first is to issue securities directly to accredited investors, who are then free to resell the securities on a secondary market. The second way is for accredited investors to directly invest in the company's capital, which gives them ownership of the shares and a claim to any profits or dividends. If you need legal help with a private placement, call this law firm for a free consultation - they’ll help you:

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/what-is-private-placement-of-shares-in-utah/

 

Comments

Popular posts from this blog

Can you file Chapter 7 bankruptcy if you have no real assets to liquidate?

Can a non-earning mother get custody of her kids if she is opting for divorce?

Can a paternity test be done before the baby is actually born?