direct placement

Direct placement

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

Private Placement

The sale of a new issue to a few large institutional investors without registering with the SEC. A private placement is exempt from SEC registration, subject to certain restrictions, because it is not offered to the general public. In order to make a private placement, the issuer must file a private placement memorandum (PPM), which explains exactly why the issue complies with SEC Regulation D exempting certain companies from registration; this is done to protect both the issuer and the investors. According to Regulation D, a PPM must contain a complete description of the security and the terms of the sale. It must also include applicable information about the issuer's financial situation and applicable risk factors. Private placement is also called direct placement.

direct placement

The sale of a new security issue to a limited number of large buyers rather than to the general public. Direct placement generally involves less expense to the issuer, although the buyer may be able to negotiate a more favorable price.
References in periodicals archive ?
3bn through a direct placement to qualified investors.
Tenders are invited for Purchase Fixed Rate Direct Placement Bonds To Benefit The Ri Airport Corporation
NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, today announced that it closed a registered direct placement with a single health-care focused institutional investor for the purchase of an aggregate of $3 million of its common stock at a price of $2.
5m registered direct placement of common stock and a USD12.
In the latter part of 2011 the Ministry of Finance resorted to direct placement of large amounts of treasury securities (about 0.
Acro, founded in 1982, is a Michigan-based staffing and IT consulting firm providing personnel services delivered as temporary, temporary to direct, direct placement, IT project and managed staffing solutions.
We are a full service staffing firm offering temporary and direct placement services with a singular focus on your local market.
Tokyo, Japan, Sept 6, 2005 - (JCNN) - Tokyo Broadcasting System (TBS) has decided to enter into a capital alliance with eMobile, a subsidiary of eAccess, through the direct placement of new shares worth 10 billion yen ($90 mil).
Direct placement of vacuum and pressure valves on the forming station allows for faster cycles, Illig says.
Moses presented the results of the DIRECT trial, a Cordis-sponsored single-arm, nonrandomized study in which 225 patients underwent direct placement of a Cypher sirolimus-eluting stent without balloon predilatation.
Topical administration of medication has the advantage of direct placement of the medication, high concentrations of medication delivered to the site of infection, ease of administration, and a lack of systemic side effects.
Temp-to-hire is the middle ground between temporary employment and direct placement.