Entrepreneurs both from Public Limited and Private Limited sector, bank heavily upon raising funds through the issue of varied financial instrument as they do not with to disclose information to the open market. Identify the method of raising capital from the primary market.

Private Placement

Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors. Entrepreneurs, herein, raise funds by selling the issues mainly to the institutional investors. Entrepreneurs both from public limited and private limited sector, bank heavily upon raising funds through the issue of varied financial instruments under this segment as at times they do not wish to disclose information to the open market.