Braden Perry Discusses Private Securities with U.S. News & World Report
The article noted that since private placements are not traded on exchanges, an individual placement may be available through one of these sources but not the others.
“Two of the main issues with private placements are their valuation and illiquidity,” Perry said.
Without a liquid market as with listed stocks, investors have a hard time knowing what their shares are worth after the initial purchase.
“Ordinarily, only private data is used for valuation and performance, which means many metrics are not captured.” “In addition, investors may be stuck with their shares for years because there is no market or way to sell until the company is listed, which may never happen. “Most private placements prohibit withdrawals by investors and are rarely allowed to sell their interests,” Perry
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