E2: What are Private Securities?
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
Real Advisers, Austin, Texas
Special thanks to:
Please visit us at: AltInvestingMadeEasy.com
Please contact us: info@AltIvestingMadeEasy.com
Roland Wiederanders: Roland@grablemartin.com
Sarah Florer: sflorer@grablemartin.com
Disclaimer: “This production is for educational purposes only and is not intended as investment or legal advice.”
© 2024 AltInvestingMadeEasy LLC All rights reserved
Creators and Guests
Host
Roland Wiederaenders
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate securities attorney with expertise in private investment funds, corporate/securities issues, mergers and acquisitions, partnership structuring, and federal income tax matters. Roland is also a member of Grable Martin PLLC.
Host
Sarah Florer
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate attorney with expertise in corporate finance and securities, structuring and restructuring, and commercial matters. Sarah is also a member of Grable Martin PLLC.
Producer
Anthony Carrano
Co-founder of the Alt Investing Made Easy podcast, fractional Chief Marketing Officer, entrepreneur, and Managing Partner at Dunamis Marketing.
