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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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 ?
(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.
There are incalculably more investors available through e-mail, bulletin boards, chat rooms and online investment letters than with traditional letters or cold calls.
And the market already gives us abundant means of protecting against it, from Consumer Reports to the countless investment letters that evaluate stocks, mutual funds, brokers, corporate buyout offers, etc.
Advice abounds through such things as investment letters, usually at significant costs for those who have the time to read and trust advice.
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:
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:
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