Private Securities - Investable Assets Issued by a Privately Owned Company - Key Points to Understand
Private securities are investable assets issued by a privately owned company in accordance with exemptions from the Securities and Exchange Commission (SEC) registration requirements. Private securities allow private companies to raise capital from a limited number of accredited investors to start or grow their business. Although private securities are exempt from registration with the SEC, issuers of private securities are still subject to all of the anti-fraud provisions of the Securities Act of 1933. Private securities encompass various types of securities, such as stocks, bonds, or debt. Here are some key points to understand. Exemption from Registration. Unlike publicly traded securities (which require SEC registration) private securities can be bought and sold between parties without an intermediary or through a broker-dealer. Private securities are not freely available for trading on open markets like stocks listed on major exchanges (e.g., the New York Stock E...