Direct Private Placements

Abstract

A direct private placement, or DPP, is a private securities offering to investors by a company without the aid of a placement agent. In other words, it is an offering marketed and sold directly to investors by company personnel. The paper examines two impediments to a DPP: (1) a company’s lack of relationships with accredited investors, and (2) company personnel lack of federal broker and state agent registrations.

Keywords: private placement, DPP, general solicitation, broker registration

JEL Classification: G30, K22, M13