What do you mean by private placement of shares? What are the options for a company?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 13GI
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What do you mean by private placement of shares? What are the options for a company?

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Private Placement of Shares:

It happens when an organization makes a contribution of securities to an individual or a group of investors. Because such a offering doesn't qualify as an public sale of securities, it shouldn't be enlisted with the SEC and is excluded from the typical reporting prerequisites.

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