Private Purchase
Definition of 'Private Purchase'A situation in which an investor (either individual or institutional) purchases all of the shares (or a fraction thereof) in a privately-held firm. Private purchases do not involve the use of capital markets and will likely require the skills of a broker. |
|
Investopedia explains 'Private Purchase'Venture capitalists commonly use private transactions when changing their positions in a given firm. These positions are commonly held for an extended period of time. Private markets are known for being less liquid and providing less information than the public markets, and the venture capitalist uses this to his or her advantage. |
Related Definitions
Articles Of Interest
-
5 Tips For Investing In IPOs
Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters. -
What's the difference between publicly- and privately-held companies?
Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A ... -
How can I sell private company stock?
In some instances, both private and public companies may issue shares to their own employees as part of a compensation program. This action is designed to motivate employees by tying a portion ... -
IPO Basics Tutorial
What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop. -
Mergers And Acquisitions: Understanding Takeovers
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game. -
7 Unconventional Ways Businesses Can Borrow Money
Find out how your business can get the money it needs - even when the bank says "no". -
Investment Choices For Wealthy People
Here is an overview of some investment vehicles that are available to wealthy investors. -
Small Business Financing: Debt Or Equity?
There are two sources of financing for small businesses: debt and equity financing. This article explains both. -
4 Big Businesses Built With Small Cash
Subway, Alienware, Ticketsnow and The Body Shop all got started with little start-up capital. -
4 Big Businesses Built With Small Cash
These four entrepreneurs built multi-million dollar companies with as little as $100. Find out who they are and how they did it.
Free Annual Reports