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Private placement

It involves issues of securities to a limited number of subscribers (less


than 200), such as banks, FIs, MFs and high net worth individual.
It is arranged through a merchant banker, an agent of issuers, who
brings together the issuers and investor(s).
Securities offered are exempt from public disclosers regulations and
registration requirements of the regulatory body.
This market is preferred by small and medium size firms, particularly
new entrants who do not have track record of performance.

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