E2: What are Private Securities?

Description

In this conversation, attorneys Sarah Florer and Roland Wiederaenders explore private securities and their role in the world of alternative assets. They define private securities as investments in alternative assets, not traditional publicly registered securities. They explain that private securities are subject to different regulations and disclosure requirements than public securities. The conversation highlights the benefits of private securities, such as the ability for small businesses to raise capital and the potential for investors to support mission-driven projects. They also emphasize the crucial role of financial education in empowering investors to make decisions about private investments and how this supports the democratization of capital. Roland and Sarah discuss the differences between public and private securities in this conversation. They explain that public securities are sold by larger companies that have filed documents with the SEC and have ongoing disclosure obligations. On the other hand, private securities are sold by companies that may not have a long history and have fewer disclosure requirements. The conversation also discusses the different types of business entities that issue private securities, such as limited liability companies (LLCs) and limited partnerships. It underscores the importance of disclosure in both public and private securities and the need for investors to understand the risks involved.

Takeaways

Private securities are investments in alternative assets, not traditional public registered securities.
Private securities are subject to different regulations and disclosure requirements than public securities.
Private securities allow small businesses to raise capital and provide opportunities for investors to support mission-driven projects.
Financial education and the democratization of capital are essential factors in private securities. Public securities are sold by larger companies that have filed documents with the SEC and have ongoing disclosure obligations.
Private securities are sold by companies that may have a short history and have fewer disclosure requirements.
Private securities are often structured as limited liability companies (LLCs) or partnerships.
Disclosure is important in public and private securities, providing investors with the necessary information to make investment decisions.
Investors need to understand the risks involved in investing in private securities.

Chapters

00:00 Introduction to Private Securities

08:19 Contrasting Private Securities with Public Securities

19:03 The Benefits of Investing in Private Securities

23:40 The Role of Disclosure Documents in Private Securities

35:29 Exploring the Risks of Private Securities and Alternative Assets

CREDITS:

Sponsored by
Real Advisers, Austin, Texas

Special thanks to:

Grable Martin PLLC

Red Sun Creative, Austin, Texas

Please visit us at: AltInvestingMadeEasy.com