What are Private Placements and Why Should Investors be Wary of Investing in Them?
Private placements are inva - are investments that aren't listed on an exchange. They're private, between individuals or corporate entities. And the biggest problem with those types of private placements is that they're not regulated by the SEC in the same way that stocks and bonds are. And so, investors need to be very careful when investing in private placements. Generally speaking, private placements are for those either with a million dollars of net worth, or collectively with their spouse making $300,000. [00:06:11] And if, um, you have that level of threshold in income or net worth, then you're allowed to invest in private placements, but it doesn't mean that you should. The government and laws suggests that that gives you some level, basic threshold of, um, ability to be able to invest in private placements. But educating yourself is of paramount importance when dealing with those types of investments.