Private Placement
Sale of shares/securities to limited number of investors privately rather than public offering.
Real World
When Elon Musk took Tesla private in 2018 (briefly), he sought to raise funds through private placement with selected institutional investors rather than via the public stock market, avoiding the scrutiny and cost of a public offering.
Exam Focus
Distinguish private placement from flotation — examiners reward contrast with public share issues on cost and speed.
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