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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › what is private placement
Dear John,
what is “PRIVATE PLACEMENT”,, and what does “PRIVATE EUITY FIRMS” mean and how does private equity firm take part in “PRIVATE EQUITY FINANCE” ,, i am totally confused about these terms inside inverted comma means ,,, please elaborate
Have you tried looking up any of these terms in Google? 🙂
A private placement is selling share in a company directly to investors rather than going through the stock exchange.
Provate equity firms are companies than buy shares in small companies directly without going through the stock exchange.
Private equity finance is the finance provided by these private equity firms.