Private Securities

These are investable assets that can be issues by a privately-owned company, following the exemptions from the registration requirements of the SEC. Private securities make it possible for private companies to come up with the capital from a limited number of accredited investors to grow or start their business. Private securities are exempt from SEC registration, but issuers of private securities still need to fulfill the anti-fraud provisions of the Securities Act of 1933. These securities also tend to have a very limited secondary market liquidity and are restricted from being resold for a period of 1 year from the date of issuance.

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