Unit-6 Sources Of Long-Term Finance And Underwriting

In this unit we shall examine in detail the nature and importance of long-term finance.

What is meant by private placement of shares? Is private placement possible for debentures also?

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Learning Pundits Content Team

Written on Apr 15, 2019 6:20:37 PM

Long-term capital which is raised by companies by issue of shares and debentures also involves transactions. Dealings in such newly floated shares and debentures of companies form a section of the capital market known as 'new issue market'. The arrangement whereby shares or debentures are decided to be allotted to friends and relatives of directors or promoters, or through private negotiation with investors is known as 'private placement'.

Yes, private placements are possible for debentures as well.

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