Private placements are typically sold to a limited number of investors, and give companies the ability to raise capital without undergoing public registration. Very often these securities are fraught with risk. When returns on traditional investments remain low, private placements may be more tempting to brokers and investors. The improper sale of these securities to unaccredited investors has been on the rise. The products themselves may also be flawed or misrepresented to even accredited investors.

Back to Typical Claims