How Does a “Private Placement” Differ from a Public STO?
A private placement is an offering of securities that is exempt from registration with regulators and is sold only to a select group of accredited or institutional investors. A public STO is open to the general public and requires full registration and compliance with securities laws, which is a more complex and costly process.
Private placements are faster and less regulated, but have a smaller investor pool.
Glossar
Private Placement
Exemption ⎊ This method of capital formation circumvents public registration requirements by targeting sophisticated investors under specific securities law exemptions, often applicable to initial token offerings or structured derivatives.
Public STO
Offering ⎊ A public STO represents the sale of tokenized securities to a broad range of investors, including retail participants, in compliance with specific regulatory exemptions.