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. These investments are also typically illiquid, which means they cannot easily be sold. They 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 even fraudulent, placements on their unsuspecting clients who are not familiar with the risks involved.

Obviously, not all private offerings are rife 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 placement that is inappropriate for you, please contact us to assist you in your investigation of this claim with a private placement attorney.