Private- Corporate Finance stealth channel.doc

 PAGE \* MERGEFORMAT 19 Private: Corporate Finance stealth channel Private financing role as a fund-raising methods have become increasingly prominent, and from the international capital market situation, through the private placement to the amount of money being raised has far exceeded the amount of funding received by public offering, so as a private placement an important way to raise funds worthy of theoretical circles and the vast majority of entrepreneurs careful study. Private Equity’s ‘red scarf’ ‘Private’ (Private placement or Private offering) as a way to raise capital, it is with the ‘public offering’ (Public offering) corresponds to the concept. Private equity has its own very distinct characteristics: First, the scope of private placement, there are strict requirements. Any private placement limited to qualified investors and has a certain number of ordinary investors, it is the most fundamental characteristics of private equity. For example, in the United States has certain qualified investors in the so-called mean assets of more than 5 million U.S. dollars of the banks, insurance companies, funds and other companies, institutional investors and annual income of more than 300 thousand U.S. dollars of the wealthy families with annual income of more than 200 thousand U.S. dollars of the wealthy individuals, , while ordinary investors do not have the above-mentioned conditions, but should have relevant knowledge and risk-judgment, and the amount can not exceed 35. Second, many of the country’s securities law explicitly provides that: private equity can not be disclosed through advertising, brochures and other forms raised to sell securities and raise capital. Public offering is not ‘light’ private ‘light’ Private equity in many ways to raise more than the superiority of the public. First, the object and scope of the public to raise as much private equity is not bound. Private placement to raise the eligibility for almost no restrictions, either