PDSnet Glossary

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Definition

An offer of shares to specific investors chosen by the board of directors. Usually, a private placing is offered to staff members, suppliers, clients and others who are closely connected with the company. Some shares in a private placing are also usually placed with a few large institutions. The benefit of a private placing is that the board is able to determine the initial composition of their shareholders so as to place the shares in "strong hands" - which means investors who are unlikely to sell the shares anytime soon.

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