Private Placements: Consider the Risks Before Investing
Every year, companies raise billions of dollars in non-public securities offerings, known as private placements, which are exempt from registration under federal securities laws. Private placements are an important source of capital for American business, especially small or start-up companies. But investing in private placements is risky and can tie up your money for a long time. It's important to understand whether they are the right investment for you.