Glossary of Municipal Securities Terms


primary offering in which a placement agent sells a new issue of municipal securities on behalf of the issuer directly to investors on an agency basis rather than by purchasing the securities from the issuer and reselling them to investors. Investors purchasing privately placed securities often are required to agree to restrictions as to resale and are sometimes requested or required to provide a private placement letter to that effect. See: DIRECT LOAN; INVESTOR LETTER; PLACEMENT AGENT. Compare: LIMITED OFFERING.

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