Private Placement Program Definition

Below please find a definition of “Private Placement Program”

Financial Analysis Training & Glossary TermsPrivate Placement Program: Issues those are exempt from public-registration provisions in section 4-2 of the Securities Act of 1933. Hedge fund shares are generally offered as private placements, which are typically offered to only a few investors, rather than the general public. They must meet the following criteria:

  • The issuer must believe that the buyer is capable of evaluating the risks of the transaction.
  • Buyers have access to the same information that would appear in the prospectus of a publicly offered issue.
  • The issuer does not sell the securities to more than 35 parties in any 12-month period.
  • The buyer does not intend to sell the securities immediately for a trading profit.

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