Private Placement

Private Placement

A private placement is a non-public offering that is not sold through a stock market, but rather through a private offering to a small number of accredited investors. These offerings do not have to be registered with the SEC. Private placement investments are typically illiquid, which means they cannot easily be sold, and are not traded on the open market. Financial advisors typically receive large commissions for selling these high-risk investments. Advisors may push these risky, or fraudulent, private placements on their unsuspecting clients who are not familiar with the risks involved. Obviously, not all private placement offerings are ripe with fraud, but clients should be aware that these investments are extremely speculative, their valuations are typically hypothetical, and they lack regulatory oversight. If you believe you have been sold a private placement that is inappropriate for you, please contact us to assist you in your investigation of this claim.