Both public equity and private equity have advantages and disadvantages for companies and investors.

An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement.

A private placement is a sale of stock shares to pre-selected investors and institutions rather than on the open market.

A distribution waterfall is a method by which capital gains are allocated between the participants in an investment.

Before securities, like stocks, bonds, and notes, can be offered for sale to the public, they first must be registered with the Securities and Exchange Commission (SEC).