Private placement is an investment approach where a security is sold directly to a small group of private investors, generally under exemptions to registration provided by the Securities and Exchange Commission (SEC) and state securities laws.
A public offering is the sale of investment units to the general public, typically requiring approval from regulatory authorities like the SEC or state securities agencies. It's an essential method for companies to raise capital by offering their securities to a wide array of potential investors. This should be contrasted with private offerings, which target a limited group of investors.
