Placement Agent

finance a la shmoop what is a private placement okay a placement means that a [Man discussing private placement]

company is placing its shares with some new owner in return for cash that is

it is placing ownership in return for capital so what's the most famous type

of public placement all right come on spell it come on with me now yes IPO so

if that's a public placement it's private kiss and cousin private [People in a car cuddling]

placement is almost the same thing all be it with fewer rules about disclosure

and structure and a bunch of other regulatory stuff in fact a private

placement is also called a regulation D placement...Such that

securities are not registered with the state or the SEC the way they would be

in a public offering in a public offering securities can be sold to [Group of people in public securities]

pretty much anyone who has the dough to buy the shares and is qualified...

....No restrictions or requirements

because the government's done all the filtering but in a private offering the

Securities can only be sold to what is called accredited investors that is

investors sign a piece of paper that warrants and represents that they're [Wealth verification document signed]

wealthy enough to lose all the money they're putting into this investment

like they have over a million bucks in assets and a few hundred grand a year or

more and education and all that and that they're smart enough to have known not

to do this investment in the first place should things go awry think no training [Boy riding a bike]

wheels, no railing, no ambulances or cops or firemen you're on your own here in a

private placement there baby and yeah good luck [Man sitting by a bus stop and bus arrives]