Qualified Institutional Buyer - QIB
 |
Definition of 'Qualified Institutional Buyer - QIB'A corporate entity that falls within the "accredited investor" category, defined in SEC Rule 501 of Regulation D. A Qualified Institutional Buyer (QIB) is one that owns and invests, on a discretionary basis, at least $100 million in securities; for a broker-dealer the threshold is $10 million. QIBs encompass a wide range of entities, including banks, savings and loans associations, insurance companies, investment companies, employee benefit plans or entities owned entirely by accredited investors. Banks and S&L associations must also have a net worth of at least $25 million to satisfy the QIB criteria. |
 |
Investopedia explains 'Qualified Institutional Buyer - QIB'QIBs must be either domestic or foreign institutions. Individuals are not permitted to be QIBs, regardless of their level of wealth or financial sophistication.QIBs are permitted to participate in the market for securities under Rule 144A, which is a safe harbor exemption from the SEC's registration requirements for securities. Transactions generally conducted under Rule 144A include: private placements of debt or preferred securities by public issuers, offerings by foreign issuers who wish to avoid U.S. reporting requirements, and common stock offerings by non-reporting issuers. |
Related Definitions
Articles Of Interest
-
Fiduciary Designations For Financial Advisors
Attaining the AIF or AIFA could help both you and your clients enjoy a comfortable retirement. -
Accredited Financial Counselor: An Introduction
This designation is highly relevant as it allows you to help the middle- and lower-income population in America. -
What's the difference between institutional and non-institutional investors?
There are a number of differences between institutional investors and non-institutional investors. If you are considering an investment in a particular stock that you've seen publicized in the ... -
Hedge Funds Go Retail
Find out how average investors are breaking into what was once reserved for the ultra rich. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street
From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street. -
Defining Illegal Insider Trading
The better you understand why insider trading can be criminal, the better you'll understand how the market works. -
Digging For Profitable Delistings
Deregistration can provide opportunities for savvy investors. We'll show you how to cash in. -
Big Pharma Faces 'Pay For Delay' Lawsuits
Unless you follow the pharmaceutical and biotech sectors, it’s likely that you’ve never heard of pay to delay. Instead of planning to lose nearly all revenue once the drug goes off patent, the ... -
How To Get A Job At The SEC
Want to make a good living taking on those renegade trading rascals on Wall Street? Here are some tips to help you get in the door at the SEC.
Free Annual Reports