Frequently Asked Questions
Q: What are the risks of investing in a private placement offering?
Private placement offerings allow companies to raise money without having to comply with the registration requirements of a public offering.
Keep in mind that companies raising money through private placement offerings often have a limited operating history and typically have more modest revenue streams than larger, more established companies. Because private placement offerings are not reviewed by regulators, they should be carefully examined prior to investing.
For more information, read an investor advisory on private placement offerings issued by the North American Securities Adminstrators Association (NASAA).
The information provided on this website is not comprehensive, is not offered as legal advice, and is not a substitute for competent legal counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information, but should carefully review all applicable statutes and regulations with the assistance of legal counsel.