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 ?
Guolian's investment letter of intent refers to a potential investment in Suntech Power Holdings Co.
The Sizemore Investment Letter is a publication of Sizemore Financial Publishing LLC--a separate and distinct company from Sizemore Capital Management LLC.
The investment letter cited the development stage company as having 23 U.
OTC:CECC) has announced today that it has entered into an Investment Letter of Intent with Ascot Investments, Inc.
The investment letter cited BMSN's recent Human Cell Tissue (HCT) Specimen Processing, Testing and Cryogenic Storage contract with NeoCells, Inc.
Published 50 times a year, Sturza's Medical Investment Letter is a leader in providing timely, objective research on the biotech, pharmaceutical and medical device sectors to investors worldwide.
Dollars are scarcer for Wal-Mart's core customer than for most people reading an investment letter.
MedLogic Global Corporation announced today that it has signed a $15 million investment letter of intent with a consortium led by Citigroup Investments and Verus International, LTD.
Senator Karim Ahmed Khawaja said that in order to enhance investment letters were written to the sixteen countries but our commercial attaches are not cooperating.
Matt also runs Forbes Newsletter Group which publishes more than 40 online investment letters, and its virtual event business, Forbes iConferences.
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