Glossary of Municipal Securities Terms


An offering of a new issue of municipal securities sold to a limited number of investors that meet certain established standards for qualifying as a purchaser of the securities. The term typically refers to an offering exempt from the provisions of Rule 15c2-12 as a primary offering of municipal securities in authorized denominations of $100,000 that are sold to no more than 35 persons each of whom the underwriter reasonably believes: (a) has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the investment; and (b) is not purchasing for more than one account or with a view to distributing the securities. See: RULE 15c2-12. Compare: PRIVATE PLACEMENT.

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