private-placement-terms

Vocabulary Word

Definition

'Private placement terms' are the rules and conditions set during a private placement, an event where a business sells securities (like shares) directly to a few chosen investors.

Examples in Different Contexts

In investment agreements, 'private placement terms' detail the conditions under which private investments are made, including valuation, share price, and investor rights. An investment advisor might specify, 'Understanding the private placement terms is essential for investors to evaluate the risk and return of the investment.'

Practice Scenarios

Investment

Scenario:

This investment opportunity looks promising. Let's delve deeper into the conditions of the private placement.

Response:

I agree. Reviewing the private-placement-terms meticulously will help us make an informed investment decision.

Law

Scenario:

Our task is to ensure the legality of these investment procedures. A critical aspect will be the private placement.

Response:

Absolutely, while constructing private-placement-terms, we have to ensure compliance with both federal and state regulations.