private placement memorandum

(redirected from Private Placement Memoranda)

Private Placement Memorandum

A document explaining a new offering of securities for private placement. Private placement involves selling securities without registering with the SEC. A private placement memorandum must then explain exactly why the offering 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 sales. It must also include applicable information about the issuer's financial situation and applicable risk factors. Because securities for general issue must be registered under Regulation D, a PPM is not allowed to contain a general offer for investment.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

private placement memorandum

The documentation that provides information on a new security issue. It is similar to but less extensive than a prospectus.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Almost 10 years ago, I was a typical mid-level corporate associate at a large New York law firm: I drafted and revised trust agreements, purchase agreements, indentures, private placement memoranda and proxy statements.
In fact, 90% of TIC sponsors offer these investments as securities, and therefore require private placement memoranda. The remaining offerings are sold by sponsors who view them as real estate and offer them through real estate brokers.
* Be named as a financial adviser in a client's private placement memoranda or offering documents.

Full browser ?