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 equity financing, 'private placement terms' refer to the agreement specifics between a company seeking funding and the private investors. A CFO might state, 'Negotiating favorable private placement terms is critical for securing the necessary capital while protecting the interests of our existing shareholders.'

Practice Scenarios

Business

Scenario:

We've identified potential investors for the private placement. It's time to start discussing the terms.

Response:

Yes, we need to craft well-thought-out private-placement-terms to safeguard our interests and protect the investors.

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.