investment letter

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Investment letter

A letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.

Investment Letter

A document that the buyer of a restricted security must file with the SEC. The investment letter states that the security is exempt from registration with SEC because the buyer does not intend to sell the security for at least two years. The investment letter helps ensure that all private placement offerings comply with applicable law, especially those concerning insider trading. If the buyer does not offer an investment letter, then he/she must register the restricted security. See also: Private placement.

investment letter

A letter from the buyer of a private placement stating that the securities are for investment purposes and not for resale within two years. An investment letter is supposed to assure the SEC that the issue is not the first stage of a regular public offering subject to normal registration requirements. See also restricted security.
References in periodicals archive ?
There are reasons for this, of course, including the fact that many investment letters can "go anywhere" to ideas, where many mutual funds are constrained by investment critieria, such as all large cap stocks.
23, 2011 (CENS) -- The 2011 Taiwan Business Alliance Conference organized by Ministry of Economic Affairs (MOEA) to solicit foreign investments is scheduled for October 19, aiming to help Taiwan ink investment letters of intent (LOI) with 30 foreign enterprises, according to MOEA officials.
Taipan has been publishing financial newsletters for over ten years and was one of the first investment letters to have a full-time Internet specialist on staff.
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