Date Posted: 
Tuesday, May 19, 2020

The COVID-19 pandemic has caused significant disruption and anxiety to individuals and the financial markets. Because fraudsters often try to capitalize on current issues and problems to promote their scams, the North American Securities Administrators Association (NASAA) issued an updated investor alert on exempt securities offerings, also known as “private placements,” in light of the coronavirus pandemic.

A private placement is a securities offering that is not required by law to be registered with federal or state securities regulators. Private placements allow companies to sell stocks, bonds or other securities to investors without completing the rigorous disclosures necessary in a registered offering.

Investors in private placements should do their own due diligence on the offering, including potentially consulting with their own legal counsel.

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Informed Investor Advisory: Private Placement Offerings