{"id":32645,"date":"2016-03-31T19:23:24","date_gmt":"2016-04-01T00:23:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/private-placement-offerings.html"},"modified":"2016-08-04T13:34:22","modified_gmt":"2016-08-04T18:34:22","slug":"private-placement-offerings","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/finance\/private-placement-offerings.html","title":{"rendered":"Private Placement Offerings"},"content":{"rendered":"
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A private placement offering is the sale of a company’s stock to private investors without the use of public market exchanges. The end result is the same as a public sale of stock<\/a> (i.e. the sale of stock to the private investor), but unlike a public offering, a private placement offering doesn’t require the registration of securities with the Securities and Exchange Commission (SEC). While less regulated, there are still restrictions on unregistered offerings that are not inherent in a "public" sale of securities, including limits on the dollar amount of stock that may be sold and the types of investors who can purchase the stock. Read on to learn more about private placement offerings to see whether they may be useful for your corporate clients.<\/p>\n

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How Are Private Placement Offerings Made?<\/b><\/p>\n

Private placement offerings are usually guided by an offering memorandum or private placement memorandum<\/a>. These are very similar to a prospectus and are distributed to potential investors before the actual sale of securities. They normally contain a wide range of information about the seller, including its:<\/p>\n