Private Purchase
A situation in which an investor (either individual or institutional) purchases all of the shares (or a fraction thereof) in a privately-held firm. Private purchases do not involve the use of capital markets and will likely require the skills of a broker. Investopedia Says:
Venture capitalists commonly use private transactions when changing their positions in a given firm. These positions are commonly held for an extended period of time. Private markets are known for being less liquid and providing less information than the public markets, and the venture capitalist uses this to his or her advantage. Related Terms:
Broker
Dealer
Initial Public Offering - IPO
Liquidity
Private Company
Private Equity
Private Placement
Venture Capital
Venture Capitalist |