letter stock

Thân thiện

Definition

1. Noun:
   • Unregistered securities: "letter stock" refers to shares of stock that have not been registered with the Securities and Exchange Commission (SEC). This means they cannot be offered or sold to the general public through standard public markets.

Usage

• Noun:
  • The company raised capital by issuing letter stock to a select group of private investors.
  • Because it is letter stock, the investor must hold the shares for a specified period before they can be resold.

Advanced Usage

• "To place letter stock": to sell or allocate these unregistered shares to qualified investors.
  • The investment bank helped the firm place letter stock with several accredited institutions.
• "Letter stock agreement": a contract outlining the restrictions and conditions of the unregistered stock purchase.
  • The letter stock agreement included a two-year holding requirement.

Variants and Related Words

• Restricted stock (n): a broader term for unregistered securities, often including letter stock. It refers to stock issued to affiliates of a company that is subject to specific sales restrictions.
• Private placement (n): a financing method where securities are sold directly to a small number of private investors, which often involves letter or restricted stock.

Synonyms

• Unregistered shares: shares not filed with the SEC.
• Control stock: shares held by affiliates of a company, subject to resale restrictions.

Related Phrases

• Letter of investment intent: a document sometimes required from the purchaser of letter stock, stating the buyer's intention to hold the investment and not to redistribute it publicly.
  • The venture capitalist provided a letter of investment intent before purchasing the letter stock.

Học thuật

Noun

1. stock that has not been registered with the Securities and Exchange Commission and cannot be sold to the general public