| Private
Investment, Public Equity - PIPE |
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This is when a private investment or mutual fund buys common stock
for a company at a discount to the current market value per share.
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It
can take up to 3 months for the transaction to be final since a registration
statement needs to be filed with the SEC.
PIPEs are generally not looked upon favorably by investors because
these transactions usually involve hedge funds, which are seeking
a quick buck and are likely to sell the PIPE shares in the market
causing the share price to drop. |
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Dictionary
