Making money through private placement
private placement is the selling of securities to a small number of investors in order to raise capital, it occur when a company makes offering of stocks to a small number of investors; it is done when a company secretly offer it securities to few investors in it bid to make it through the capital market. As from its name private placement, it is private and certain rules guide its operation because of the high risk involved. In private placement the national stock exchange is not involved, stockbrokers are not involved and it is not advertised to the public.
Private placement is highly risky but there is money in it, through private placement, companies can also come into the market after the initial public offers (IPOs). But here only qualified investors are invited, there is no service of a stock stockbroker because this is exclusively done out of the stock exchange.
most investors prefer stock from already standing firms and will prefer securities only through the stock exchange but smart once can go for a young but great companies; new companies that has a future. Private placement can make investors a profit of 10% - 100% of his total investment,
Is a special way small companies raise capital before they enter the stock market. Private placement are less expensive because they do not require the service of a stockbrokers, it may be the only source of income
read more; http://stock-exchange-co..com