TradeAlmanac
Sign in

Private placement

An issue of new shares to a predetermined circle of subscribers.

How to read the number

A fast way to raise money from a specific investor; the remaining holders take no part and their stakes shrink accordingly.

When the metric lies

This is where the pre-emptive right usually applies, but it has to be claimed within the window — otherwise the stake shrinks by default.

Also known as: private placement

Related terms