CASH COW

[mick]

*A. #A private placement
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The sale of securities to a relatively small number of select investors as a way of raising capital.
Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds.

Private placement is the opposite of a public issue, in which securities are made available for sale on the open market.
These shares are usually bought by accredited investors - To be an accredited investor, you must be one of these:

a bank, insurance company, registered investment company, business development company, or small business investment company;

an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company,
or registered investment adviser makes the investment decisions,
or if the plan has total assets in excess of $5 million;

a charitable organization, corporation, or partnership with assets exceeding $5 million;

a director, executive officer, or general partner of the company selling the securities;

a business in which all the equity owners are accredited investors;

a natural person who has individual net worth, or joint net worth with the person’s spouse,
that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;

a natural person with income exceeding $200,000 in each of the two
most recent years or joint income with a spouse exceeding $300,000
for those years and a reasonable expectation of the same income level
in the current year;
or
a trust with assets in excess of $5 million, not formed to acquire
the securities offered, whose purchases a sophisticated person makes.