On The Structuring Of Legal System On The Private Placement

As an effectively and economical channel for investing and financing,the private offering whose essential meaning is to exempt from a registration rule aren't applicable by the rules of the public offering include information disclosure.The private placement has inherent advantages in promoting the circulation of capitals,enhancing the efficiency of financing,and saving issuance fees.On a micro basis,the private placement fulfils the enterprises' financing needs,and increases their competitiveness;while on a macro basis,it plays a more and more important role in the field of funds by providing an effectively and economical channel for investing and financing.The purpose of this article is to redefine the private placement on securities and make the private placement system meet the current demand of balancing between convenient financing and investor protection,by expounding the basic theories and limitation of the private placement system.After redefine the private placement on securities,this article will suggest several ways to structure the domestic legal system on private placement.In this article it is proposed to structure the domestic legal system on securities,by expounding the basic theories and the conceptions relevant to the private placement regime,and benefitting from the US legal system in this field.Both Identification standards of the private placement and the information disclosure system still need to be further improved legislation.