Tuesday, September 23, 2008

What are private investments?

Private investments are all those investments that are not publically traded on a stock echange. Typically it is difficult to find the various private investments that are available in North America. You usually have to be lucky enough to be marketed to by them in order to hear about the opportunity. Private investments are usually available to sophisticated investors or accreditted investors. You can google those terms if you like but essentially it means you have a certain net worth and therefore it is understood that if you should happen to lose your investment you will still be able to put food on the table. Private investments can be stock offerings, unit offerings, bonds, LLC partnerships etc. Quite often many private investments start at $10,000 minimum. Most private investments should have an Offering Memorandum or a Private Placement Memorandum. Private investments typically have very high returns when you invest in company stock or shares and that company eventually goes public. Usually when you invest privately you are investing directly into the company itself vs going through a brokerage firm.

2 comments:

Unknown said...

nice post

CM said...

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