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Private placement

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Definition of Private placement

Private Placement Image 1

Private placement

The sale of a bond or other security directly to a limited number of investors.


private placement

Sale of securities to a limited number of investors without a public offering.


Private Placement

Sale of stocks, bonds or other investments directly to an institutional investor or individuals. Prior registration with the regulatory authorities is not required if the securities are purchased for investment as opposed to resale.



Related Terms:

Exempt securities

Instruments exempt from the registration requirements of the Securities Act of 1933 or the
margin requirements of the SEC Act of 1934. Such securities include government bonds, agencies, munis,
commercial paper, and private placements.


Offering memorandum

A document that outlines the terms of securities to be offered in a private placement.


Offering Memorandum

A "prosperous-like" document providing detailed descriptions of a company's past, present, and prospective business operations. It is normally prepared for the use of potential purchasers of securities offered under the seed capital or private placement prospectus exemptions.



Debt displacement

The amount of borrowing that leasing displaces. Firms that do a lot of leasing will be
forced to cut back on borrowing.


Direct placement

Selling a new issue not by offering it for sale publicly, but by placing it with one of several
institutional investors.


Private Placement Image 2

Going-private transactions

Publicly owned stock in a firm is replaced with complete equity ownership by a
private group. The shares are delisted from stock exchanges and can no longer be purchased in the open
markets.


Placement

A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be
making a placement.


Private Export Funding Corporation (PEFCO)

Company that mobilizes private capital for financing the
export of big-ticket items by U.S. firms by purchasing at fixed interest rates the medium- to long-term debt
obligations of importers of U.S. products.


Private-label pass-throughs

Related: Conventional pass-throughs.


Private Saving

That part of disposable income not spent on consumption.


Private unrequited transfers

Refers to resident immigrant workers' remittances to their country of origin as
well as gifts, dowries, inheritances, prizes, charitable contributions, etc.


Privately held

A company that is entirely owned by a small number of people; further, its shares are not publicly traded.


Replacement

This subject of replacement of existing policies is covered because sometimes existing life insurance policies are unnecessarily replaced with new coverage resulting in a loss of valuable benefits. If someone suggests replacing your existing coverage, insist on having a comparison disclosure statement completed.
The most important policies to examine in detail are those which were issued in Canada prior to December 2, 1982. If you have a policy of this vintage with a significant cash surrender value, you may want to consider keeping it. It has special tax advantages over policies issued after December 2, 1982.
Basically, the difference is this. The cash surrender value of a pre December, 1982 policy can be converted to an annuity in accordance with the settlement options in the policy and as a result, the tax on any policy gain can be spread over the duration of the annuity. Since only the interest element of the annuity payment will be taxed, there will be less of a tax impact on the annuitant. Policies issued after December 2, 1982 which have their cash surrender value annuitized trigger a disposition and the annuitant must pay tax on the total policy gain immediately. If you still decide to replace existing coverage, don't cancel what you have until the new coverage has been issued.


Replacement Capital Expenditures

Capital expenditures required to replace productive
capacity consumed during a reporting period.


Replacement-chain problem

Idea that future replacement decisions must be taken into account in selecting
among projects.


Replacement cost

Cost to replace a firm's assets.



replacement cost

an amount that a firm would pay to replace an asset or buy a new one that performs the same functions as an asset currently held


Replacement cost

The cost that would be incurred to replace an existing asset with one having the same utility.


Replacement cycle

The frequency with which an asset is replaced by an equivalent asset.


Replacement parts

Parts requiring some modification before being substituted
for another part.


Replacement value

Current cost of replacing the firm's assets.


Replacement Value

The amount necessary to duplicate a company's assets at current
market prices


Replacement Value

Cost of acquiring a new asset to replace an existing asset with the same functional utility.


Stock replacement strategy

A strategy for enhancing a portfolio's return, employed when the futures
contract is expensive based on its theoretical price, involving a swap between the futures, treasury bills
portfolio and a stock portfolio.



 

 

 

 

 

 

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