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 ?
162) The trade group contends that the OCC's ruling in the Union Bank Wind Farm Investment Letter fails to meet these requirements, since the borrower is not obligated to repay principal and since the bank receives payments based on revenues from the project and tax credits.
The investment industry exec takes pains to state his appreciation of "business success" and abhorrence of "government meddling in the economy," but in a rhetorical style not usually found in investment letters adds:
An important characteristic that sets the Alcosta Growth Report apart from many other investment letters is that holdings in the Model Portfolio represent real-money holdings in actual Alcosta client portfolios.
Market pessimists can usually find what they're looking for in hedge fund manager Jeremy Grantham's quarterly investment letters, but for the gloom-and-doom junkies who need "more" to get their fix, Grantham delivers in his just-published installment:
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.
Applying the power of the Internet and its own technology, MarketWatch has enabled us to essentially turbo-charge our data - allowing users to manipulate it in ways that provide new insights into the market and the world of investment letters.
In a recent column the well-known newsletter pundit, Mark Hulbert, reported that 'The Value Line Investment Survey is in first place, on a risk-adjusted basis, among all the investment letters tracked by the Hulbert Financial Digest since mid-1980.
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