A new investor alert has been issued by the Financial Industry Regulatory Authority. The alert warns investors that private placements are risky and can tie up funds for a significant period of time. <\/p>\n
A private placement is an offering of securities by a company that is not offered to the public at large and is not registered with the SEC. Many of these offerings are made pursuant to Regulation D of the Securities Act of 1933. Generally, one must be an \u201caccredited investor\u201d to make an investment in a private placement. Institutions such as banks and insurance companies, and organizations or trusts with assets of $5 million or more, are accredited investors. For an individual to be an accredited investor, the person must have a net worth of $1 million or more, excluding the value of the person\u2019s primary residence, or an income of more than $200,000 in the two most (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A new investor alert has been issued by the Financial Industry Regulatory Authority. The alert warns investors that private placements are risky and can tie up funds for a significant period of time. A private placement is an offering of…<\/span><\/p>\n